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Spanish Naturgy Group sells Chilean CGE to Chinese SGCC [free access]

July 27, 2021

Spanish Naturgy Group has concluded the sale of its electricity network business in Chile to the Chinese State Grid International Development Limited (SGID)—a wholly-owned subsidiary of State Grid Corporation of China (SGCC)—following the successful completion of the tender offer launched by SGID, as a necessary and final step to complete the transaction. With this, it has completed the sale of 96.04 per cent stake of its subsidiary Compañía General de Electricidad (CGE) in Chile to SGID for EUR2,600 million.

 

In mid-November 2020, both companies announced an agreement for the sale of Naturgy's stake in CGE. Subsequently, the transaction obtained the relevant regulatory approvals, as well as the necessary authorisations from the competition supervisory bodies in Chile, prior to the launch of the tender offer by SGID at the end of June 2021.

 

CGE, one of the largest electricity companies in Chile, is engaged in the electricity transmission and distribution of energy throughout Chile, with concessions in the regions of Arica, Parinacota, Antofagasta, Coquimbo, Valparaíso, Metropolitana, O'Higgins, Maule, Ñuble, Biobío and La Araucanía.

 

The sale is part of Naturgy’s strategy to improve its balance sheet and focus more on its renewable energy business.

 

(EUR1=USD1.19)