Enel: Indecopi indicates that it has not yet received a concentration permit request from Southern Power Grid.

National Investigation and Promotion of Free Competition (DLC) Indecopi said on Tuesday that it has not yet received a request for permission to acquire China Southern Power Grid’s Enel Distribución Perú SAA and Enel X Perú SAC. In this sense, the organization indicated that it is not possible to provide information on this matter at the moment.

Indecopi stressed in a statement that the said request is important because, under the “Law Establishing Preliminary Control of Business Concentration Operations”, after receiving the document, it will be evaluated within the time frame established by law, taking into account technical criteria, goals and ensuring economic efficiency in the markets for consumer welfare.

The organization clarified that since the entry into force of the Law in June 2021, Received 27 business concentration requests. Of these, 22 were approved without conditions, one application was approved but with a warning about the risks to the competition, one was withdrawn by the applicant, and the remaining three are still pending.

Enel sells operations

Enel Group announced that it has reached an agreement with Southern Power Grid International (CSGI) to complete the sale of its distribution networks 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. The company announced in advance its withdrawal from the Peruvian market as part of its global strategy to reduce debt and streamline its 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.”

SNI criticizes purchase

The National Society of Industry (SNI) has warned that if the purchase is approved, we could face “concentration in the distribution of electricity in Lima”.

In a statement, the union recalled that in 2020 Luz del Sur was sold to the China Three Gorges Corporation group owned by the Chinese state, and pointed out that the company that had just acquired Enel’s operations is also owned by the Chinese state.

Therefore, they indicate that if this sale is approved, it will result in a concentration of 100% of the market for electrical distribution Lima in the hands of the People’s Republic of China.

“This is not about creating a ‘monopoly’ in private hands, but about ‘creating a monopoly’ in the ownership of electricity distribution in the hands of a foreign power,” warns SNI.