Enel Sells Peru Assets to China’s CSGI for $2.9 Billion
Italian energy giant Enel has agreed to sell its Peruvian assets to China’s CSGI for approximately $2.9 billion. The deal marks the largest foreign direct investment in Peru’s history and is a major step forward in the country’s efforts to attract foreign investment.
Enel’s Assets in Peru
Enel has been operating in Peru since 2009, when it acquired the majority stake in the country’s largest electricity distributor, Edelnor. Since then, the company has expanded its presence in the country, investing in renewable energy projects and acquiring additional electricity distribution companies.
Enel’s assets in Peru include two hydroelectric plants, two wind farms, and two solar plants, as well as a portfolio of electricity distribution companies. The company also owns a stake in the country’s largest natural gas distributor, Gas Natural.
China’s Growing Interest in Peru
China has been increasing its presence in Peru in recent years, investing in infrastructure projects and acquiring stakes in local companies. In 2018, China’s State Grid Corporation (SGCC) acquired a majority stake in Peru’s largest electricity distributor, Edelnor.
The acquisition of Enel’s assets marks the largest foreign direct investment in Peru’s history and is a major step forward in the country’s efforts to attract foreign investment.
The Deal
Under the terms of the deal, CSGI will acquire Enel’s assets in Peru for approximately $2.9 billion. The deal is expected to close in the second half of 2023.
The acquisition will give CSGI control of Enel’s electricity distribution companies, as well as its renewable energy projects. It will also give the company a stake in Peru’s largest natural gas distributor, Gas Natural.
Benefits for Peru
The acquisition of Enel’s assets by CSGI is expected to bring a number of benefits to Peru. The deal will provide the country with a much-needed influx of foreign investment, as well as access to the latest technologies and expertise from China.
The deal is also expected to create jobs in Peru, as CSGI plans to invest in the country’s energy infrastructure. This will help to improve the country’s energy security and reduce its reliance on imported energy sources.
Conclusion
Enel’s sale of its Peruvian assets to China’s CSGI for approximately $2.9 billion marks the largest foreign direct investment in Peru’s history. The deal is expected to bring a number of benefits to Peru, including an influx of foreign investment, access to the latest technologies and expertise from China, and the creation of jobs. The deal is expected to close in the second half of 2023.