Italian energy group Enel has expressed interest in the two power distribution companies that US-based gas and power utility Sempra Energy is selling in Chile and Peru. The group could propose a takeover bid before mid-2019.
Sempra Energy recently reviewed its strategy: the group decided to focus on the North American markets and to divest its equity interests in its South American businesses. In February 2019, Sempra initiated the sale of its 100% stake in Chilquinta Energia, the third-largest distributor of electricity in Chile, with around 2 million consumers in the cities of Valparaiso and Viña del Mar; Chilquinta Energia is also involved in the development and operation of power transmission lines. Sempra also decided to sell its 83.6% stake in Luz del Sur, the largest electric company in Peru that serves more than 4.9 million power consumers in the southern region of Lima. Luz del Sur is also involved in the development of several hydropower projects such as the Santa Teresa hydropower plant in central Peru.
Enel is seeking to expand its energy distribution activities in Latin America, where its customer portfolio, distributed volumes and sales are growing rapidly: in 2018, its distributed electricity volumes in South America rose by nearly 30% to 117 TWh, as its customer base in the region rose by 38% to 26.5 million. In addition, Enel sells electricity to nearly 26 million customers (+41%) and its sales rose by 22% in 2018 to 91 TWh.