CTG purchased 100% of Duke Energy assets in Brazil

China Three Gorges Corporation (CTG) through its subsidiaries CTG International and CTG Brasil announced today it has reached an agreement to purchase 100% of Duke Energy assets in Brazil. CTG Corporation will acquire Duke Energy’s assets in Brazil for US$1.2 billion enterprise value.

With this acquisition, CTG strengthens its Brazilian subsidiary, as a top-tier clean energy generator in Brazil.  After the acquisition is complete, CTG Brasil will increase its clean energy generation portfolio by 2.27 GW, reaching a total of 8.27 GW of capacity under its management and on proportional equity holdings.

“This transaction is another important step in our strategy to become a relevant clean energy company in Brazil. We are pleased with the quality of assets, which are being operated in harmony with local communities and the environment,” says Li Yinsheng, CEO of CTG Brasil.

Duke Energy Brazil owns 2,274 MW of power generation facilities. It has eight hydroelectric plants with 2,257 MW of capacity located on the border between the states of Sao Paulo and Parana and owns two small hydroelectric plants, each with a capacity of 17 MW, located on the Sapucai Mirim River in northern Sao Paulo State.

The completion of the transaction is conditioned on approvals in Brazil from ANEEL and CADE (Conselho Administrativo de Defesa Economica), the required approvals by Chinese authorities, as well as other conditions precedent customary to this type of transaction.

CTG´s financial advisor is Bank of America Merrill Lynch and its legal advisors are White & Case LLP and TozziniFreire Advogados.

Photo: courtesy of China Three Gorges Brasil Energia Ltda.