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Friday, 03 February 2012 08:49

Chinese Corporation takes 25% stake in Portugal’s national power grid

The State Grid Corporation of China is taking a 25 per cent stake in Portugal’s national power grid.

The deal is the the second large-scale Portuguese acquisition since December by a Chinese energy group. The Portuguese Government is selling a total of 40 per cent of grid operator Redes Energéticas Nacionais to international bidders under the terms of its €78bn financial rescue package. Together with the other 15% which will be acquired by Oman Oil, the latest deal is worth a total of €592m.

The purchase reflects moves by China’s utility companies to expand overseas and by European Governments keen to take advantage of Chinese funds. Earlier this month the China Investment Corporation acquired an 8.68 per cent stake in Thames Water, while on a visit to the Far East Chancellor George Osborne called for more Asian investment in UK infrastructure.

 

 

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