Hong Kong’s biggest electricity provider, CLP Power, and state-owned China Southern Power Grid have agreed to buy Exxon Mobil’s 60 per cent stake in Castle Peak Power Co., the South China Morning Post, reported Wednesday. The companies will each pay HK$12 billion. The deal strengthens CLP’s presence in Hong Kong and brings a mainland player into the city’s closed electricity market for the first time, the report said. It is not expected to affect tariffs as it involves only shares, without adding fixed assets, but analysts said a strengthened partnership between the largest power suppliers in Hong Kong and southern China could help CLP meet 2020 emissions target that may require more clean energy to be imported from the mainland, the report said.
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