Ferrovial buys Chilean power transmission business
Ferrovial is entering the electricity transmission business in Chile with the acquisition of Transchile.
Chile and power transmission have both been identified as key target areas in Ferrovial’s diversification strategy.
It has reached an agreement to buy the company – whose full name is Transchile Charrúa Transmisión – from Brazilian companies Alupar and Cemig.
Once funded, the transaction will represent an investment of US$72m (£52.6m) by Ferrovial. The deal is expected to be completed in the next few months.
Transchile was founded in 2005 when it was awarded to build and the rights to operate a double-circuit 220kV power transmission line between the substations of Charrúa in the Biobio region and Cautín in Araucana. The line came into service in January 2010. Transchile is owned 51% by Alupar and 49% by Cemig.
Ferrovial has identified power transmission as part of its business diversification strategy. The company said that its experience in construction and in concessions equip it to enter this new business. The Transchile acquisition also provides it with a platform for future projects in Chile and other countries that offer opportunities to build and operate power lines.
Chile is one of the key countries in Ferrovial’s geographical diversification strategy. The company has been operating in Chile since 1996, in the toll roads, services, construction and airports businesses.
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This article was published on 14 Sep 2016 (last updated on 14 Sep 2016).