China’s State Grid nears Oman electricity deal
China: State Grid Corp. of China is nearing an agreement to acquire a 49 % stake in Oman’s state-owned transmission company in the first major privatization by the Middle East’s largest non-OPEC oil producer.
China: State Grid Corp. of China is nearing an agreement to acquire a 49 % stake in Oman’s state-owned transmission company in the first major privatization by the Middle East’s largest non-OPEC oil producer.
The privatization attracted interest from large international investors and is the largest in size in the country’s electricity sector. The nation’s Nama Holding would retain a controlling stake in Oman Electricity after the transaction.
A potential deal will be a landmark for the Gulf Arab monarchy as it embarks on asset sales of government-owned entities to plug one of the largest budget deficits among oil exporters. The deal is also a sign of China’s rising interest in the Middle East amid plans by President Xi Jinping to increase the nation’s political clout and revive ancient trading routes.
Oman Electricity owns and operates the nation’s main transmission network. The company, which is a subsidiary of Nama Holding, posted profits of $60 M for the first half of the year.
Source: Gulf News