Compañía General de Electricidad divides into two companies

Cuatrecasas, through its Santiago de Chile office, has advised Compañía General de Electricidad (CGE) on separating the electric power transmission and distribution businesses. The result of this division is a new company, CGE Transmisión, which will concentrate the assets and operations of the electric power transmission business and services other than distribution.

With this separation of business lines, the company complies with Act 21.194, of December 21, 2019, including the new article 8 ter to the General Law on Electrical Services, which provides that electricity distributors must have a sole and exclusive line of business.

The division—whose formalization is subject to the Financial Market Commission (CMF) approving CGE Transmisión and its subsequent registration on a stock exchange—will take place for accounting purposes on October 1, 2021.

The Cuatrecasas team handling the transaction was made up of lawyers Roberto Guerrero, Tomás Kubick, Macarena Ravinet, Martín Dell'Oro, Tomás Montes and Isidora Opazo.