US$3.59 billion acquisition of Peruvian energy company

By Espinosa Bellido Abogados

China Yangtze Power Co Ltd, a subsidiary of China Three Gorges Corporation, announced that it has successfully completed the acquisition of an 83.6% stake in Luz Del Sur, the largest power company in Peru, for the base purchase price of US$3.59 billion.

China's largest publicly listed power company, China Yangtze Power Co Ltd engages in electric power production, technological consultation of electric power generation and selected distribution services. Luz del Sur serves about 800,000 customers southeast of the country’s capital, Lima. The sale also includes Tecsur, which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur’s generation business that operates a 100-megawatt hydroelectric power plant in the Cusco region of Peru.

"This transaction represents the largest acquisition of overseas power distribution assets by a Chinese company and is one of the most prominent M&A transactions globally in recent years. Despite the impact of the Covid-19 outbreak, relevant parties across China, the United States and Peru coordinated seamlessly to obtain the required regulatory approvals and complete the transaction in an expeditious manner", China Yangtze Power Co Ltd stated in a press release published by BNamericas.