SGCC Signed Agreements to Acquire ACS Transmission Assets in Brazil

Release time£º2012-08-12      Dotnum£º1002

On the morning of May 26th Spain time, State Grid International Development Ltd. (SGID) signed the agreements to purchase transmission assets in Brazil with three companies of Actividades de Construcciones y Servicios (ACS) in Madrid, Spain. SGCC vice president and SGID chairman Mr. Du Zhigang attended the signing ceremony. SGID general manager Mr. Zhu Guangchao and vice general manager Mr.Yu Jun signed the Equity Purchase Agreements together with the seller representatives.

Under the SGCC-ACS deal, SGCC will pay $530 million (1.05 billion Reais) to take over 7 electricity transmission assets spanning five voltage levels from 138kV to 500kV with a total length of 2,792km. A majority of the assets to be acquired are currently in operation, with the remainder expected to begin commercial operation by the end of this year.

The acquisition is SGCC's second investment in Brazil, which will further expand SGCC's market share in Brazil, benefit its cooperation with the existing assets, and enhance SGCC's influence and competitiveness in the Brazilian market.

ACS is one of the world's largest transnational construction companies, whose main business involves four areas-construction, franchising, environmental services and industrial services. ACS is also the largest shareholder of Iberdrola with 14.85% shares, a Spanish multinational electric utility company.

Source: Department of International Cooperation, SGID