Duke Energy to sell international businesses in South and Central America for $1.2bn

Duke Energy has signed a $1.2bn agreement to sell its international businesses in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared Capital. 

The latest sale represents the remainder of the Latin American businesses Duke Energy is leaving.

The company plans to use the after-tax proceeds to reduce its debt.

In February, the company started the process of exiting its International Energy business segment.

As part of the transaction, I Squared Capital will acquire Duke Energy businesses, including hydroelectric and natural gas generation plants, and transmission infrastructure, as well as natural gas processing facilities totalling 2,300MW.

Global infrastructure investment company I Squared Capital focuses on energy, utilities, and transport in the Americas, Europe and select high-growth economies.

The transaction requires Argentina antitrust approval, and is expected to close in the first half of next year.

The sale excludes Duke Energy's 25% equity investment in National Methanol Company, a Saudi Arabian regional producer of methanol and methyl tertiary butyl ether (MTBE), a gasoline additive.

In a separate announcement, Duke Energy said it will sell its holdings in Brazil to clean energy group China Three Gorges (CTG) for $1.2bn.

Duke Energy president, CEO and chairman Lynn Good said: "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.

"It's also a clear win for I Squared Capital and China Three Gorges Corporation, which are acquiring quality operations. We look forward to working with them to close the transactions."

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Image: Duke Energy started the process of exiting its International Energy business segment in February this year. Photo: © Duke Energy Corporation.