Chinese Peru energy deal risks monopoly, industry group says

LIMA : A Peruvian industry group said on Tuesday that a major Chinese deal to buy two local power suppliers would hand the Asian country a near monopoly over the sector in Peru, particularly in and around populous capital Lima.

Under the agreement, Enel's Peruvian subsidiary will sell its entire stake of 83.15 per cent in power distribution and supply company Enel Distribucion Peru and 100 per cent of Enel X Peru, which provides advanced energy services. The deal would add to the 2020 purchase by Chinese state-owned Three Gorges Corporation of Luz del Sur, which supplies power to the other half of Lima, and a 2018 deal for the Chaglla hydroelectric plant, Peru's third largest power generator.

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