2010-12-21 17:05

State Grid Corp of China said it has taken over seven Brazilian power transmission companies with investments totaling nearly $1 billion, Reuters reported on Tuesday

The move marks the grid operator's second major overseas foray after buying Philippine transmission assets last year.

The acquisition was expected to bring $110 million in earnings annually, and was set to provide a gateway for Chinese electromechanical products into the South American market,?State Grid?said in a report on the website of the State-owned Assets Supervision and Administration (www.sasac.gov.cn) on Tuesday.

The company will run power transmission assets including 16 500-kilovolt power lines totaling 3,173 kilometers and transformation stations in Brazil's southeastern coast, and provide power services to Brasilia, Rio de Janeiro and Sao Paulo.

State Grid added that it had secured 30-year operating rights, which could be extended by another 20 years with the approval of the Brazilian power authorities.

It was previously reported that the company had paid $1.7 billion for the assets.

In January 2009, State Grid led a consortium to pay $3.95 billion for a 25-year licence to run parts of the Philippine's power transmission networks.