This operation was part of a broader transaction wherein Luz del Sur sought control over Sojitz Arcus Investment S.A.C. and indirectly Majes Arcus S.A.C., tying into China Three Gorges Corporation’s (CTG) ongoing expansion in Peru’s electricity generation and distribution market. CTG acquired an 83.6% stake in Luz del Sur in 2020 for $3.59 billion, securing dominant positioning in Lima’s power market. The northern sectors are also controlled by Chinese state entity China Southern Power Grid following its 2024 acquisition of Enel Peru’s assets.
Indecopi emphasized that full transparency is indispensable for accurate assessment of market concentration impacts and competition risks under Peru’s Law No. 31112. Luz del Sur defended their failure to disclose by claiming ambiguity over reporting requirements and different procedural filings. The regulator rejected these arguments, setting a legal precedent under the current concentration control framework and sending a strong message on regulatory compliance.
This penalty marks the first administrative sanction under Peru’s modern merger control regime, reinforcing governance expectations amid significant foreign investment inflows in sustainable energy assets. The fine is subject to appeal within 15 business days before Indecopi’s specialized competition tribunal. The incident may prompt closer surveillance of future energy sector deals, especially as China-backed companies accelerate infrastructure acquisitions in the region.
This article was curated and published as part of our South American energy market coverage.
