The Peruvian authority of the free competition approved the acquisition of Luz del Sur by Yangtze Power International (CYPI) by USD 3.6 billion.
CYPI, advised by Estudio Muñiz, requested the authorization of Indecopi on October 0219 because the transacction exceed the thereshold set by the Peruvian law for the acquisitions carried out at the power industry. This is the largest deal closed in this industry in Peru in all history.
According to the autorithy was complex to study the vertical and horizontal effects of this purchase. That is the reason because the procedure took all the time that the law allow (5 months).
CYPI is a subsidiary of China Three Gorges Corporation, one of the largest players at the electrucity sector across the world. Luz del Sur was a subsidiary of Sempra Energy, that was involved not only at the distrinbution business in Peru, but also at the generation sector through Inland Energy (also a matter of the deal).
Pierino Stucchi, senior partner and head of the antitrust practice was involved in this procedure. José Antonio Bezada (partner), Raúl Alosilla Díaz (senior associate) y Fernando Ballón (associate) were also strongly involded. Jorge Muñiz, founder partner of the firm, took part at the oral presentation of the case before the free competition Committee of Indecopi.