Companies

State Grid to buy 7 Brazilian power companies

(Agencies)
Updated: 2010-08-26 17:51

State Grid Corp of China, the nation's largest grid operator, is waiting for approval to complete the purchase of seven Brazilian energy companies, the 21st Century Business Herald reported. The deal is said to be worth 3.1 billion reais ($1.8 billion), including 1.3 billion reais in debt.

The seven companies are mainly engaged in power transmission, including Elecnor SA, Abengoa SA, Isolux Ingenieria SA and Cobra Instalacionesy Servicos SA.

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The director of Brazil's electricity regulator Nelson Hubner was cited by Bloomberg as saying, "The chance of approval is nearly total."

Brazil, the largest economy in Latin America, recorded a 14 percent increase in industrial electricity consumption in July, while its household electricity consumption in 2009 rose to the highest in 11 years.