On June 24, 2020 local time in Chile, after obtaining the approval of the National Development and Reform Commission, the State Grid Corporation of China's wholly-owned acquisition of Chile's Chilquinta Group Company (Chilquinta) was successfully completed. The transaction is valued at US$2.23 billion and is the largest investment project of a Chinese company in Chile's energy and public utilities sector.
In October 2019, the company signed an equity purchase agreement with the seller Sempra Energy (SRE.N) to acquire 100% of Chiquinta.
SRE is headquartered in San Diego, California, and is one of the largest utility companies in the United States. Readers who are interested in U.S. news may remember that in November 2018, California had the most influential wildfire in history, which burned the northern town of Paradise with 27,000 residents to ashes, known as the Camp Fire. SRE's assets were hit hard by this wildfire. Later, the company was asked by investors (mainly hedge fund Elliott Management Corp and investment company Bluescape Group) to shrink overseas investment. In January 2019, SRE announced that it would sell assets in Chile and Peru, focusing on the US and Mexico operations.
Interrupt a piece of lace news: The boss of hedge fund Elliott Management Capital is billionaire Elliott, who holds a large number of shares in mining companies and likes to actively intervene in the governance of holding companies. Koala was also impressed that Elliott had asked BHP to sell North American shale oil assets. In 2018, after BHP launched its new slogan "ThinkBig", Elliott established the website FixingBHP.com and advertised "Think Smart" on the streets of Melbourne, Australia. This website is still there, and interested readers can check it out.
Closer to home, SRE announced in the second half of last year that it would sell its Peru business to the listed company of China Three Gorges Corporation, China Yangtze Power International (Hongkong) Co., Limited, for US$3.59 billion. Sale of Chilean assets to State Grid International, a subsidiary of State Grid of China.
Yangtze Power's acquisition of an 83.6% stake in Peru's Luz Del Sur (LDS) distribution company will be completed in April 2020. LDS is the largest power company in Peru. It mainly conducts power distribution business in Lima, the capital of Peru. It accounts for about 29% of Peru's national market share, ranking first. In addition to the power distribution business, LDS also has 100,000 kilowatts of hydropower assets that have been put into production, and about 740,000 kilowatts of high-quality hydropower reserve projects. This is also the reason why the Three Gorges of the Yangtze River shot.
