Endesa gains control of Chilean generating group

Spanish utilities group Endesa ended a long-running battle in May to gain control of Chilean energy group Empresa Nac- ional de Electricidad (Endesa Chile). In the largest ever stock operation in Chile, Endesa bought 30 per cent of Endesa Chile through Enersis, its Latin American investment vehicle.

Endesa Spain now controls 60 per cent of Endesa Chile through Enersis. The Spanish group bought approximately 2.5bn shares in Endesa Chile on the Santiago stock exchange in an auction held on May 11. The auction had originally been scheduled for 29 April, but was suspended by Chile`s anti-trust commission.

The deal has made Endesa Spain the leading player in Latin America`s markets. Endesa Chile owns or controls generating assets in Argentina, Brazil, Chile, Colombia and Peru. Enersis, which Endesa Spain gained control of earlier this year is one of Latin America`s biggest energy multi-nationals.

A reversal of the anti-trust commission`s decision allowed Endesa Spain to relaunch its Peso360 per share offer for the Chilean group. US energy group Duke Energy had earlier made a Peso275 per share offer for Endesa Chile, but withdrew it in late April after Endesa Spain raised its own offer.