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Enel sells operations to a Chinese company, what will that mean?

Enel – producer and distributor of electricity and gas | Fountain: In that

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Enel Group announced that it has reached an agreement with Southern Electric Grid International (CSGI) complete the sale of its distribution operations in Peru.

As stated in the message, the sale of the entire stake in the energy company in the country was carried out in the amount of 2.9 billion US dollars.

Recall that last year the company announced its withdrawal from the Peruvian market as part of a global strategy to reduce the company’s debt. company and optimize your business portfolio.

In a previous statement, the company indicated that they have reached a position of stable growth and cannot invest much more in the country for various reasons.

Now, Enel CEO Francesco Starace points out that this deal “allows us to maximize the value of the investments made so far in Peru in the digitization of the grid and advanced energy services, while continuing to implement the announced asset plan in November in Enel’s strategic plan for financial markets.”

This deal is expected to result in a reduction duty group’s consolidated net worth of approximately €3.1 billion in 2023.

But it is worth noting that the completion of the sale is subject to the previous conditions in place in the country for this type of transaction, including the approval of Indecopi, which oversees acquisitions and mergers at the national level, and the relevant Chinese foreign direct investment (ODI) authorities.

But what will this purchase entail? According to Rafael Lak, energy specialist at Enerkory, more than 70% energy market in Peru it would be in the hands of Chinese companies.

“The Chinese state participates in all of its private or state-owned companies. After entering Luz del Sur, it has now reached Enel and the Asian giant’s stake is already in the entire distribution of Lima, that is, more than 70% of Peru’s energy consumption,” he told La República newspaper.

But he pointed out that the fluidity of the offer should not change because of this change in companyas there are standards for quality of service and network expansion.

Source: RPP

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