Asia > Eastern Asia > China > China State Grid evaluates the assets of Spanish group Abengoa in Brazil

China: China State Grid evaluates the assets of Spanish group Abengoa in Brazil

2016/04/07

Staff from China National Grid visited the power transmission projects in Brazil owned by Spanish group Abengoa to consider a possible acquisition of these assets, Reuters reported Tuesday.

The Spanish group, which requested creditor protection in November 2015 due to debts that could reach 25 billion euros, has ended any investment in Brazil, leaving some work to be completed.

A federal source cited by Reuters said the Brazilian government would prefer that all assets of the Abengoa group were sold as a package to China National Grid, which is considered the only group with the financial capacity to make a success of this business.

The Chinese group confirmed its interest in the Brazilian assets of Abengoa and added that, to date, it had “not submitted any formal proposition.”

Since the end of 2015 the Brazilian Ministry of Mines and Energy has had a number of meetings with Brazilian and foreign investors in order to find a potential investor for those assets. these assets include transmission lines in operation and other projects that are still under implementation.

The Chinese group arrived in Brazil in 2010 with the acquisition of seven power transmission companies in a transaction worth US$989 million. Since again it has invested over 200 million reais in construction of its headquarters building in Rio de Janeiro and in several projects put up for auction by the Brazilian government.

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