State-run utility State Grid Corporation of China said its plan to buy the power transmission lines in Brazil of Spanish firm Abengoa SA is likely to take more time than expected.
The reason is that talks have been complicated by the range and nature of the assets involved, said Ramon Haddad, Vice-President of State Grid Brazil Holding, a local subsidiary of the Chinese firm, in comments to news agency Reuters this week.
He was additionally quoted saying State Grid’s local unit was “also eyeing assets in other segments of the domestic electricity industry” in Brazil.
Abengoa had stopped its construction programme for Brazil projects late last year, following its application in Spain for protection from creditors, due to mounting debts. According to Reuters, Abengoa was building more than 6,000 kilometres of power transmission lines in Brazil, where it already operates around 3,500 kms of such infrastructure.