Energy

China to buy 7 Brazil transmission firms

(Agencies)
Updated: 2010-05-19 10:49

RIO DE JANEIRO - China's State-run electricity grid firm has agreed to buy seven Brazilian transmission companies from Plena Transmissoras for 3.1 billion reais ($1.72 billion), local media reported on Tuesday.

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Plena, controlled by a group of Spanish energy firms, will sell seven of its 12 transmission divisions to State Grid Corp of China, according to the business daily Valor Economico, which cited a Plena official.

The deal, which is subject to regulatory approval, includes the transfer of 1.3 billion reais in Plena debt to the Chinese company, which will receive access to 3,000 kilometers (1,864 miles) of transmission lines in Brazil.

Plena, controlled by Spanish firms Elecnor, Isolux and Cobra, previously rejected buyout offers from Cemig, run by Brazil's state of Minas Gerais, and Colombia's ISA group, Valor said.