LIMA : The Peruvian unit of Italy’s biggest power utility, Enel, said on Friday that China Southern Power Grid is carrying out “due diligence” on the local unit for a possible purchase offer on its energy distribution operations.
Bloomberg reported earlier on Friday that the state-owned Chinese firm is weighing a possible bid for Enel’s distribution business in Peru, which could be valued at some $3 billion.
Enel’s local unit said in a statement, however, that it has no information about the status of talks or the possible amount of the “eventual transaction.”
Due diligence often refers to a legally required appraisal of an asset by a potential purchaser geared toward better understanding all assets and liabilities.
In recent years, Chinese companies have shown growing interest in Latin American commodities, including energy sector investments.
The power company’s owner, state-owned Assets Supervision and Administration Commission of the State Council (SASAC), did not immediately respond to a request for comment.
Source: CNA
