China's government controlled power grid operator State Grid Corp. is interested in buying Spain's Red Electrica de Espana SA (REE.MC) and Spain's gas grid operator Enagas SA (ENG.MC), reports El Mundo in its Monday Internet edition, citing Spanish government sources.

Despite reassurance that the Chinese company will be "generous in its offer" for the companies, the Spanish government is reluctant to sell, at least for the time being, as it concerns two strategic companies, the paper adds, citing the same sources.

Spain holds a 20% stake in Red Electrica, which at current market prices is worth EUR1 billion, and owns a 5% stake in Enagas, which is worth about EUR200 million.

Newspaper Web site: www.elmundo.es

-Write to Enza Tedesco at enza.tedesco@dowjones.com

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