Following the purchase of seven power-transmission subsidiary companies in December 2010, China's State Grid Corp has made further inroads into the Brazilian power market, as its subsidiary State Grid International Development Corp has now obtained a 100% stake in those seven companies at cost of US$942 million.

The corporation acquired the assets from Actividades de Construccin y Servicios SA, which boast 2,800 kilometers in length around eight provinces of Brazil.

The majority of the subsidiary companies are already in operation, with the remainder to be ready by the end the year. The deal is still awaiting approval from the Chinese and Brazilian governments.

The investment mainly targets the operating income of local power grids, said Zhou Dadi, vice chairman of the China Energy Association.

State Grid International Development Corp has already carried out three major overseas investments, including a 25-year management contract for the Philipines' national power grid, the December 2010 Brazil deal, and obtaining a 25% stake in Portugal's national energy network.

The peak of China's grid construction has passed, said Zhou, enabling State Grid Corp to invest abroad with the backing of existing resources and technology.

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