China Yangtze Power Co. Ltd. has tied up a $3.59 billion deal with Sempra Energy for the US-based firm’s interests in Peru, as the state-owned Chinese utility company deepens its global footprint, said Caixin.
The all-cash deal will be made through a subsidiary, China Yangtze Power International Co. Ltd., according to a filing to the Shanghai Stock Exchange this week. It is expected to be completed by the first quarter of next year, according to a separate statement from Sempra.
The acquisitions “will improve (China Yangtze Power’s) overall competitiveness … and will help lay a foundation for the company to further expand the power distribution business in Peru and across South America,” read the filing. The company’s state-run parent firm China Three Gorges Corp. already holds interests in Peru.
Sempra’s major holdings in Peru include Luz del Sur S.A.A., the South American country’s largest utility company. The purchase will bolster China Yangtze Power’s global portfolio, which already boasts businesses in countries including Germany, Brazil and Malaysia.