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Duke Energy to buy Chilean assets of CGE

CHARLOTTE, N.C. (AP) -- Duke Energy Corp. said Wednesday that its international subsidiary will buy the Chilean assets of CGE Group for $415 million, expanding its hydroelectric business in South America.

The acquisition of Iberoamericana de Energia Ibener S.A. includes two hydroelectric power plants with combined installed capacity of 140 megawatts.

Duke Energy International has been operating in Chile since July, when it acquired a power plant there. The country is now the international subsidiary's fourth-largest country in terms of generating capacity.

The company said it will continue to evaluate additional growth projects in Latin American countries, like Chile, where there is strong growth potential and a stable regulatory system.

Citigroup and Banchile Citi acted as advisers on the transaction.

Duke Energy International owns, operates or has a stake in roughly 4,600 megawatts of generation in Latin America, of which approximately 70 percent is hydroelectric. Its parent company, Duke Energy, is the largest electric power holding company in the United States and is based in Charlotte, N.C.

Shares of Duke Energy fell 17 cents to $64.41 by midmorning, in line with the broader market.