SAO PAULO (Reuters) - State Grid Corp of China [STGRD.UL] is studying whether to acquire electricity distribution subsidiaries that will be sold by Brazil’s state-owned Centrais Elétricas Brasileiras SA (ELET3.SA) by year’s end, an executive at the Chinese firm said on Wednesday.
State Grid will consider a bid because is committed to the country in the long term, said Ramon Haddad, vice president of operations for the company in Brazil.
Eletrobras, as the company is known, plans to sell the six money-losing distributors. The decision predates the decision by Brazil’s government in August to privatize Eletrobras as a whole.
China continues to expand its investments in Brazil with an emphasis on infrastructure and natural resources projects despite a broader crackdown on what Beijing calls “irrational” outbound investment in sectors such as property and entertainment.
Reporting by Luciano Costa; Writing by Jake Spring; Editing by Lisa Shumaker