China Knowledge reports that State Grid Corporation of China, the country’s main TSO, has completed the takeover of seven Brazilian power transmission companies with investments totaling nearly USD 1 billion.
The power assets acquired include 3173 km of 16500 kV power lines and transformation stations along Brazil’s southeastern coast. SGCC will now provide power services mainly to the densely populated southeastern region, which includes the two largest cities Rio de Janeiro and Sao Paulo.
In addition, the Chinese company has bought 30 year operating rights, which could be extended by another 20 years with the approval of the Brazilian power authorities.
The acquisition, which marks the company’s second major overseas foray after the purchase of Philippine transmission assets in 2009, is expected to bring in USD 110 million in earnings each year and make the Chinese state-owned firm the fifth largest power operator in Brazil.