China conglomerate goes offshore with US$803m UK wind farm deal
China Resources National says stake will raise international profile and help to acquire knowledge of offshore operations
China Resources National, one of the country’s largest state-backed conglomerates, has agreed to buy a 30 per cent stake in an offshore wind farm in the UK for £600 million (US$803 million).
The acquisition follows Beijing’s call for companies to “go global”. The firm’s listed power generation unit, China Resources Power (CRP), will take a 40 per cent stake in a purchasing consortium, in its maiden overseas foray.
The remaining 60 per cent will be held by two other subsidiaries, CRP said in a filing to Hong Kong’s bourse on Tuesday.
“The transaction allows the group to participate in the “go global” strategy of the China Resources Group, and take advantage of the attractive geographical opportunity to raise its international profile,” it said. The move will allow CRP to establish “a platform for cross-border expansion into European markets and make a debut investment in the European offshore wind energy sector”, the company added.
The purchase will be settled by buyers’ funds and bank borrowings.
A CRP spokesman said the company, with no current offshore wind farms in China, is keen to gain experience and knowledge of offshore wind farm operations to help its future expansion in China.