Linklaters advised State Grid International Development (SGID) on it’s acquisition of 25 per cent. of the share capital of REN – Redes Energéticas Nacionais, SGPS, S.A. which marks the first Chinese acquisition of a stake in a European national grid company.
This acquisition was made within the second phase of REN’s privatisation that was approved by the Portuguese Government as part of the measures undertaken in the financial assistance programme agreed between the European Commission, the European Central Bank and the International Monetary Fund.
State Grid International Development Limited is a fully owned subsidiary of State Grid Corporation of China, a state-owned Chinese company which is the largest utility in the world, ranking 7th on Fortune 500 in 2011. REN – Redes Energéticas Nacionais, SGPS, S.A. owns and operates high voltage power and high pressure gas transmission networks and is also the concessionaire of an LNG terminal and gas storage facilities in Portugal.
Linklaters’ teams from Beijing and Lisbon advised on this transaction and were led by partners Thomas Ng and Jorge Bleck.
This adds to Linklaters’ impressive list of Chinese outbound M&A and energy sector transactions and re-affirms the firm’s leading position as clients’ firm of choice on their most important strategic transactions.
Beijing based partner Thomas Ng said:
“We are very pleased to have advised SGID on their first acquisition in the European Union, a transaction that is very important both for our client as well as the Portuguese Government. This transaction re-affirms our leading position in advising on China outbound M&A transactions as well as in being the leading international firm in Portugal.”
Lisbon based partner Jorge Bleck said:
” It was very important for us having advised State Grid on this strategic move into Europe. The transaction raised very challenging issues and has required an un-parallel level of commitment and cooperation between Beijing and Lisbon offices that only Linklaters could have been able to provide. We are very happy of having contributed to this State Grid significant success.”
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