GasNatural Fenosa has taken a major step by forging a deal to buy the Chilean firm Compañía General de Electricidad in a purchase valued at 6 billion euros.
The acquisition will allow GasNatural to position itself favorably in Chile before the government there starts awarding new power plant contracts next year. Also, the deal gives GasNatural some flexibility with is business, because they will be able to leverage their buying contracts in the United States. The purchase, which is GasNatural's biggest ever in Latin America, looks like a growth move and is likely to yield a strong profit.
