Portugal Says REN Stake Buy Won't Affect China's State Grid Holding

Portugal's government has said its acquisition of a stake in power and gas grid operator REN will not affect the 25% holding of China's State Grid, which Lisbon wants to keep as 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. During that absence, the Chinese state-owned utility built a 25% stake and became REN's largest shareholder. The government intends to raise its own holding to as much as 20%.

In a statement, the Finance Ministry said Lisbon had informed Beijing that the state's entry into REN's capital would not change State Grid's 25% stake. It added that keeping State Grid as a reference shareholder was in Portugal's interest.

The ministry cited growing geopolitical uncertainty and the rising strategic importance of energy infrastructure as reasons for the investment, describing electricity and gas networks as critical to energy security, the energy transition, industrial development and attracting investment.

It framed the move as part of a broader trend of 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. Most EU countries, it said, retain state ownership or significant shareholdings in such operators.

The ministry said the investment would give the state greater oversight of a strategic asset and help align REN's long-term strategy with national priorities. It also pointed to the push to electrify the economy and attract investment in artificial intelligence and data centres as factors justifying the decision.