Flavio Cattaneo, CEO of Enel
Milei winks and Enel thinks better of it. The disposal of the subsidiary Edesur has been frozen
Tomorrow, Thursday 21 March, Is in the will make public the financial results for 2023. However, the main attention is focused on the possible change of the corporate strategy in Argentina: it seems that Edesurthe controlled distribution company, may no longer be destined for sale as initially expected by the number one Flavio Cattaneo.
Thanks to the recent ones deregulatory measures in the energy sectorcreated to favor large international groups as announced by the president Javier Milei, Cattaneo is evaluating the possibility of maintaining an active presence in the country. In Buenos Aires, yesterday, a meeting was held between Cattaneothe chief of staff Nicolas Possethe Minister of Economy Luis Caputowith Claudius Weyne Cunhathe Enel manager in Argentina, e Juan Carlos Blancopresident of Edesur.
The meeting was considered positive, and according to Argentine government sources, the official account of the Argentine Cabinet mentions “expectations of Is in the on ongoing reforms in the energy sector and new investment opportunities”.
However, it is too early to draw definitive conclusions. Enel is waiting to evaluate some conditions, such as the decision on the renewal of the concession for the El Chocon hydroelectric power plantpreviously suspended by the government of Alberto Fernandez. The latter had extended the concession until January 19, 2024, with the intention of bringing it back under the control of the public company Enarsa (Energía Argentina Sociedad Anónima). For Edesuractive in energy distribution in the Buenos Aires area, is estimated to generate revenues of approximately 250 million dollars.
It is clear that with the installation of the new ultra-liberal government there have been significant changes. Already in mid-January, Cattaneo he had made a quick visit to Argentina to meet Mileiand from that moment rumors had circulated about a possible revision of the country's exit strategy.
During that first meeting, the Argentine president confirmed the government's commitment to respecting contracts in order to attract foreign investments and promote economic development. Subsequently, in mid-February, it was Milei's turn to visit Rome for his first official meeting since taking office at the Casa Rosada.
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