State-Owned Power Companies “Venture Out”

Reuters reports that China’s state-owned power companies have responded to the central government’s “internationalization strategy” for SOEs by deploying their strong cash positions abroad, where they have encountered few political roadblocks amid ’s dilemma:

A quarter of Portugal’s power grid operator, REN, will be sold to China’s State Grid Corp for 387 million euros ($507.82 million), part of a wave of privatizations Lisbon has to carry out under the terms of its 78-billion-euro European Union/International Monetary Fund bailout loan.

On Wednesday, the State Grid News, the Chinese company’s official publication, said the need by struggling economies to sell off state-owned assets “created entry opportunities” for China, and the deal would provide a springboard into other markets.

The State Grid isn’t the first to take advantage of Europe’s troubles, and is not expected to be the last.

February 10, 2012, 10:50 PM
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