Reference Message Networkreported on December 18 that the British "Financial Times" website reported on December 16 that China State Grid has agreed to acquire 49% of the Oman State Grid Corporation of Oman, a subsidiary of Oman State-owned Power Holding Group.
reported that State Grid said in a statement on the 16th that the acquisition-China's largest single investment in the Middle East country-will promote China's "Belt and Road Initiative" initiative, which aims to build and invest in the infrastructure of Eurasia and extend all the way to the edge of Europe.
the Beijing-based power supplier reportedly did not provide any financial details, people familiar with the matter said the company would pay about US $1 billion (about 7 yuan) for a stake in Oman's State Grid Corporation.
report, U.S. Lufter data show that in 2016, State Grid made seven global acquisitions, with a total expenditure of 8.4 billion US dollars. In the year, State Grid agreed to buy a controlling stake in CPFL Energy, Brazil's largest power distribution company, and a substantial stake in the Greek grid operator. The company also currently operates networks in Italy, Portugal and Australia.
but since 2017, many Chinese companies have slowed down the pace of overseas acquisitions.
According to Lufter's data, in the past 10 years, Chinese enterprises have invested only 50 million US dollars in Oman.
reported that State Grid called the deal with Oman part of China's "the belt and road initiative" initiative. According to this plan, Chinese enterprises have built much-needed bridges and ports in many developing countries.
Belt and Road Initiative includes a number of agreements with Middle Eastern countries, including a $10 billion investment fund planned to be launched in conjunction with the Kuwaiti government. Iraq announced in September that it would join the initiative.
Source: Reference News Network
