April 13, 2016 / 2:22 PM / 2 years ago

China State Grid interested in Abengoa's Brazil assets -regulator

SAO PAULO, April 13 (Reuters) - China State Grid is very interested in acquiring energy transmission projects in Brazil belonging to Abengoa SA and is conducting due diligence on the assets, the director of electric energy regulator Aneel said on Wednesday.

Work on the projects stalled last year after the Spanish firm ran into financial problems, and Aneel director Jose Jurhosa said the regulator has been in talks with Abengoa.

Jurhosa said that he expected Abengoa and State Grid to reach a deal in April.

Reuters reported earlier this month that officials from State Grid were in Brazil and visiting Abengoa’s projects.

State Grid has invested more than $1 billion in Brazil’s energy sector since 2010. Abengoa has about 6,000 kilometers of transmission lines under construction that will demand billions of dollars in investments.

The Spanish company also has debts of more than 800 million reais ($227 million) with equipment suppliers in Brazil, according to the electricity industry association Abinee. ($1 = 3.52 reais) (Reporting by Luciano Costa; Writing by Reese Ewing; editing by Grant McCool)

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