SN Power ACA Holdings of Singapore has been granted approval by Zambia to acquire 51 per cent equity in Lunsemfwa Hydropower Company for $880m.

Wanda Gorge Investment, which owned 99 per cent before the transaction, will retain a 49 per cent stake.

Zambia’s antitrust body said that Lunsemfwa did not qualify to be a dominant or monopoly company because it held only 3 per cent market share in electricity generation and supply in Zambia. The remaining 97 per cent is supplied by the state-owned utility Zambia Electricity Supply Corporation.

Brian Lingela, director of consumer and public relations, said that the acquisition would not disadvantage vigorous competition in the power generation and supply market since SN Power was currently not operating and had no presence in Zambia.

According to the antitrust body, Lunsemfwa Hydropower Company presently generates 50 MW.

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