A&O Shearman advises on multiple strategic overseas acquisitions for China Southern Power Grid International

Strategic Investment in Uzbekistan's Renewable Energy

CSGI has acquired a 35% stake in the Bash and Dzhankeldy Wind Projects in Uzbekistan from ACWA Power, representing a combined capacity of 1 GW and over USD1.3 billion of investments. This transaction, which closed on July 17, 2024, is a pioneering co-investment and partnership between ACWA Power and CSG for a large-scale renewable energy project in Central Asia, and a substantial move towards sustainable energy solutions in the region.

This investment not only underlines CSG's commitment to renewable energy but also expands its global footprint, particularly in a region that has become increasingly attractive to Chinese investors.

The A&O Shearman team was led by Beijing-based partner Ling Li and counsel Lucia He, with support from members of the ENRI, M&A and debt finance teams, including associate Vicky Wang and partners Yvonne Ho and Matthew Bisley, as well as associate Tianyi Xu. Partner Ben Ward and Senior Legal Manager Mahmoud Kherallah from Dubai corporate team, Senior Associates Kasam Kiani and Rushal Noor from Abu Dhabi Corporate team and Senior Associate Michaela Nemethova from Bratislava Corporate team also provided support to the transaction.

Expansion into Peru's Energy Market

CSGI has made a significant USD3.1bn acquisition of an 83.15% stake in Enel Distribución Perú and a 100% stake in Enel X Perú.

Enel Distribución Perú is a leading electricity distributor in the Lima region, serving the largest customer base across more than 50 districts. The acquisition of Enel X Perú, an advanced energy services provider, complements CSGI's portfolio and enhances its capabilities in the energy sector.

This transaction bolsters CSG's presence in Latin America, following its USD1.3bn acquisition of a 28% stake in Transelec, the largest pure-play power transmission company in Chile. It signifies CSG's growing influence in the region and its dedication to investing in and managing cross-regional power transmission and distribution projects.

The A&O Shearman team was led by Beijing-based partner Ling Li and counsel Lucia He, with support from ENRI, M&A and debt finance team members including associate Vicky Wang, partner Yvonne Ho, senior associate Dian Wang and associate Peggy Zeng. London-based partners Richard Evans and Jan Skuhravy also provided support to the transaction. Antitrust advice was provided by counsel Charles Pommies (Brussels).