China’s State Grid in Deal for Australia Power Assets

State Grid Corp. of China, the world’s biggest utility by revenue, is seeking to buy power assets worth billions of dollars in Australia.

In an acquisition bound to face close regulatory scrutiny in Australia, the state-owned utility said Friday it had reached an agreement with Singapore Power Ltd. to purchase listed and unlisted assets that include electricity and gas networks supplying Australia’s two largest cities.

State Grid, or SGCC, is looking to pay an undisclosed amount for 60% of Singapore Power’s unlisted assets—among them, the Jemena utility that manages more than 5 billion Australian dollars (US$4.88 billion) worth of pipelines and transmission networks serving millions of customers on the east coast, including Sydney and Melbourne. The agreement also includes the purchase of 20% of SP AusNet Ltd., a Sydney-listed transmission group, for A$824 million, according to both companies.

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Ross Kelly, Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/n_4qI_djrcM/