The State Grid Corporation of China (SGCC) will buy seven Brazilian transmission companies from Plena Transmissoras for $1.72 billion, the Beijing News reported Thursday.

State Grid can have access to 3,000 kilometers of transmission lines in Brazil after completion of the deal.

The acquisition, which includes Plena's debt worth a total of $713.78 million, still needs to be approved by Brazilian National Electricity Regulatory Agency.

Covering 88 percent of the country, State Grid is the largest electric power transmission and distribution company in China and the world.

The company has subsidiaries for North China, Northeast China, East China, Middle China and Northwest China.

State Grid is ranked 8th on the Fortune Global 500 list of the world's largest companies by revenue this year, up from last year's 15th.

The deal's target assets include a 100 percent stake in Ribeirao Preto, Serra Paracatu, Poc os de Caldas, Itumbiara and Serra de Mesa and 75 percent stake in Expansion Transmissao de Energia Eletrica and Expansion Transmissao Itumbiara Marimbondo, as well as total liabilities of 1.3 billion Brazilian Real, according to earlier report

Phone calls to State Grid went unanswered.

State Grid initiated the deal through its subsidiary State Grid International Development (SGID), which was set up in 2008 to oversee investments in overseas power transmission projects, electrical equipment procurement services and other related investments.

"The $1.7 billion deal is part of SGID's efforts to exploit overseas markets for State Grid's transmission technology and equipment products and services," the 21st Century Business Herald said.

"State Grid is clearly trying to forge a complete industrial chain with SGID as its platform to turn itself into an international power giant," the newspaper said.

In 2007, State Grid won the rights to operate the Philippine power grid with a $3.95 billion bid for up to 25 years.