OREANDA-NEWS. January 18, 2011. Standard Bank, Africa’s largest bank by assets, acted as the sole financial adviser to the State Grid Corporation of China (SGCC) on its USD 1.8 billion acquisition of 100% ownership of seven power transmission companies in Brazil.  This landmark acquisition is one of the largest investments made by a Chinese company in Brazil. 

SGCC, the world’s largest utility, has bought the seven companies from Spanish groups Cobra, Elecnor, Isolux and Abengoa. 

Says Craig Bond, Chief Executive of Standard Bank in China: “Standard Bank is pleased to have been the financial advisor to State Grid and to be involved in advising Chinese companies on investing capital, technology and skills into refreshing emerging markets infrastructure to facilitate their economic growth.”

SGCC is the world’s largest utility company and was ranked as the eighth largest company on the Fortune 500 in 2010. It has more than one billion customers and more than 1.6 million employees.

Standard Bank combined its significant investment banking expertise, its government and corporate access and its on-the-ground capabilities in Brazil and China to complete the transaction. Commenting Mr Bond says: “The group’s deep understanding and long-standing presence in these markets played a key role in ensuring a high quality solution for the SGCC.” 

Marcio Santiago, Head of Power and Infrastructure, of Standard Bank in Brazil added: “This landmark transaction, the largest and most significant of its kind in Brazil, is testament to Standard Bank’s cross-border capabilities, both in China  and in Brazil where Standard Bank is advising clients on a number of major infrastructure transactions.”

The Stock Purchase Agreement was signed in May last year, regulatory approvals were granted in subsequent months and the transaction was closed in late December 2010.

In March 2008, the Industrial and Commercial Bank of China (ICBC) purchased a 20% stake in Standard Bank Group Limited and both banks entered into a strategic cooperation agreement. As a result of this Standard Bank has developed a strong team of almost 60 Investment Bankers in Beijing and Shanghai and concluded cross border transactions with Chinese companies and State owned enterprises in Brazil, Russia and a number of African countries including Botswana, Ghana, Nigeria and Zambia.