Xinhua reported that the State Grid Corp. of China will spend $989 million to buy seven Brazilian power distributors. State Grid owns a 30-year concession, with another 20-year renewal, to distribute power to Brazil’s southeastern region, the most economically advanced area, which includes major cities such as Rio de Janeiro, Sao Paulo, and Brasilia.
“The deal for the seven Brazilian power distributors is expected to generate more than $110 million in annual earnings for State Grid Corp. It will also open markets for China to sell machinery to South America and to construct electricity projects there.”
Source: Xinhua, December 21, 2010