China close to acquiring Brazilian energy companies

The SGCC expects to complete its acquisition of seven Brazilian energy companies from Plena Transmissoras for $1.72 billion by October.

The acquisition by the State Grid Corporation of China, which includes Plena's debt worth a total of $713.78 million, still needs to be approved by Brazilian National Electricity Regulatory Agency.

The deal's target assets include a 100 percent stake in Ribeirao Preto, Serra Paracatu, Poc os de Caldas, Itumbiara and Serra de Mesa and 75 percent stake in Expansion Transmissao de Energia Eletrica and Expansion Transmissao Itumbiara Marimbondo, as well as total liabilities of US$739.4l, according to a report.

The deal will allow the State Grid Corporation of China access to 3,000 kilometers of transmission lines in Brazil.

It was reported in May that SGCC initiated the deal via its subsidiary State Grid International Development Ltd.