Duke Energy reaches deals to sell Latin American businesses
Charlotte-based Duke Energy on Monday announced deals to sell international businesses in Latin America for a total of $2.4 billion.
Late Monday, Duke said it reached an agreement to sell operations in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared Capital for about $1.2 billion, including the assumption of debt.
Earlier in the day, the company said it was selling its Brazilian business for $1.2 billion to China Three Gorges Corp.
The after-tax proceeds of the deals are expected to be used to reduce Duke Energy holding company debt. The agreements encompass all of the Latin American businesses the company has previously said it plans to exit.
“Our strategic transformation is gathering more momentum as we exit the Latin American market to focus on our domestic regulated core business, which was bolstered by our recent Piedmont Natural Gas acquisition,” Duke CEO Lynn Good said in a statement.
Duke Energy started the process of spinning off its international energy business segment in February. The sale of the international business, the company has said, is part of a move away from investments with uncertain returns toward the safety of more predictable regulated businesses.
Duke’s latest deal comes a week after the energy company announced that it had completed its $4.9 billion purchase of Piedmont Natural Gas, also based in Charlotte.
China Three Gorges Corp. is the world’s largest producer of hydroelectric power, Duke said. The company also focuses on renewable energy, including wind and solar power.
The China Three Gorges deal is contingent upon approvals from Brazilian and Chinese authorities and is expected to close in two to four months. The I Squared Capital transaction, which is expected to close in the first half of 2017, requires Argentina antitrust approval, but it’s not a condition of closing.
Katherine Peralta: 704-358-5079, @katieperalta
This story was originally published October 10, 2016 at 8:06 AM with the headline "Duke Energy reaches deals to sell Latin American businesses."