Portugal says entry into grid operator REN won't affect China's State Grid

By Sergio Goncalves

LISBON, Sept 23 (Reuters) - Portugal's government said its acquisition of a stake in power and gas grid operator REN would have no implications for the 25% stake held by China's State Grid, which it wants to remain a key shareholder.

The state agreed last month to buy 13.7% of REN, returning to the company 12 years after exiting during Portugal's bailout, a period that saw the Chinese state-owned utility acquire a 25% stake and become its largest shareholder.

The Portuguese government plans to increase its holding to as much as 20%.

The Finance Ministry said in a statement late on Tuesday that Lisbon had informed Beijing that the state's entry into REN's capital would not imply any change to State Grid's 25% stake.

"On the contrary, it is in the Portuguese government's interest for State Grid to remain a reference shareholder in REN," it said.

The ministry said growing geopolitical uncertainty and the increasing strategic importance of energy infrastructure justified its investment in REN, arguing that electricity and gas networks are critical to energy security, the energy transition, industrial development and attracting investment.

It said the move "forms part of a global trend towards greater government involvement in strategic sectors", noting that Portugal had been the only European Union member state without a state stake in its national electricity grid operator.

The ministry said most EU countries retain state ownership or significant state shareholdings in their national electricity grid operators.

It said the investment would give the state greater oversight of a strategic asset and help align REN's long-term strategy with national priorities.

"Geopolitical changes and the growing importance of energy, and electricity in particular, especially in the push to electrify the economy and attract investment in artificial intelligence and data centres, also justify the decision," it said.

(Reporting by Sergio Goncalves; Editing by Stephen Coates)