Duke Energy has announced that China Three Gorges Corporation has agreed to buy the US utility’s hydropower business in Brazil, while it has also agreed to sell its businesses in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared Capital.

Both deals have been valued at $1.2 billion and represent Duke Energy’s full exit from the Latin American market

"Our strategic transformation is gathering more momentum as we exit the Latin American market to focus on our domestic regulated core business, which was bolstered by our recent Piedmont Natural Gas acquisition," said Lynn Good, president, CEO and chairman of Duke Energy. "It's also a clear win for I Squared Capital and China Three Gorges Corporation, which are acquiring quality operations. We look forward to working with them to close the transactions."

The company began the process of exiting its International Energy business segment in February 2016.

In the Brazil acquisition, China Three Gorges will acquire eight hydroelectric plants with 2257MW of capacity located on the border between the states of Sao Paulo and Parana and two small hydroelectric plants, each with a capacity of 17MW, located on the Sapucai Mirim River in northern Sao Paulo State.

The Duke Energy businesses I Squared Capital will acquire in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina include hydroelectric and natural gas generation plants, transmission infrastructure and natural gas processing facilities, totaling 2300MW.