China State Grid to buy stake in Australia network

State Grid is the world’s largest utility company with annual revenue of $300 billion.

A State Grid sign is seen above a State Grid training center in Beijing. File photo.

China’s State Grid Corp. is buying a stake in an Australian electricity network company for about $800 million.

SP AusNet, which operates the electricity network in Australia’s Victoria state and a gas network, said on Friday that State Grid is buying the 19.9 per cent stake from Singapore Power Ltd.

State Grid is the world’s largest utility company with annual revenue of $300 billion. It has a growing international business with investments in Brazil, Portugal, Australia and the Philippines.

Singapore Power will continue to be the largest shareholder in SP AusNet after the sale is completed with a 31.1 per cent stake.

The 824 million Australian dollars ($802 million) deal requires regulatory approval in China and Australia and must also be cleared by the top finance official in Australia’s government.