LatinNews Daily - 19 February 2021

In brief: Chile opens anti-trust investigation over Chinese acquisition

*Chile’s economic prosecutor’s office (FNE) has announced that it has launched an anti-trust investigation into the purchase of local electricity distribution firm CGE by Chinese state-owned electricity company, State Grid Corporation of China (SGCC). Back in November 2020 SGCC announced that it had reached a deal with Spanish firm, Naturgy, to buy its 96% stake in CGE for US$3bn. However, the announcement has produced concerns about the concentration of the market given that in June 2020 SGCC completed the purchase of another electricity distributor, Chilquinta Energía, from US firm Sempra Energy for U$2.2bn. Electricity sector analysts say that with these purchases, SGCC will now control over 50% of Chile’s electricity distribution market, which will be the main focus of the FNE investigation.