According to a report on Reuters on 4 July 2018, Southern Power Gold, one of China’s two state grid firms, “has been short-listed in an auction expected to fetch around €400 million for a stake in Luxembourg utility Encevo.”

Such a stake would see the Chinese company following in the footsteps of other state-owned Chinese utilities, which have already invested in Europe.

The article states that, “Southern Grid is vying with insurer Allianz, Dutch infrastructure investor DIF and a second Asian bidder for the 25.5% stake, sources said, adding that final offers are due by early August.”

Encevo is currently owned by the Luxembourg state (28%), and the state banks SNCI and BCEE hold a joint 26.2%, with the City of Luxembourg holding a 15.6% stake.