Terra Group‘s Strategic Expansion into Latin American Energy Markets
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A significant shift is underway in Latin America‘s energy landscape, with Honduras-based Terra Group rapidly expanding its influence. Recent moves indicate a growing presence in Peru, alongside existing operations across Central America and Colombia. This strategic expansion, spearheaded by fredy Nasser Selman, is poised to reshape the regional energy sector.
Romero Group Divestments and Threelands Energy
Despite recent divestments in its local market, the Peruvian Romero Group participated in the 2023 acquisition of 90% of Energy, Central America’s largest private electricity distribution company serving over 12 million users. This acquisition was made in partnership with other investors through Threelands Energy, a UK-based company created to acquire, operate, and develop energy companies in the region.
Threelands Energy describes itself as “an investor in the energy and electricity sector backed by a group of experienced professionals with experience in the sector in Latin America.”
The sale of Primax Colombia and a strategic alliance with Primax Peru and Ecuador to A Corp (owned by Terra Group) remains subject to regulatory approval. Independent financial analyst Ernesto Linares estimates the deal’s value at under US $1.5 billion.
Did You Know? Primax Peru reported revenues of S/ 13,000 million in 2024, demonstrating its significant market position.
Fredy Nasser Selman and the Terra Group
At the helm of Terra Group is Fredy Nasser Selman, described by linares as “one of the richest men in Honduras.” Nasser Selman began his entrepreneurial journey in real estate at age 22, opening his first service station in 1996.
Over three decades, the group has diversified into four key divisions: Terra Energy, Terrale, Terra Infrastructure (including several Honduran airports), and Terra Inmobiliaria, with a presence in eight countries.
In 2013, Nasser Selman acquired Biomax, Colombia’s fourth-largest fuel operator, with annual sales near 20 million pesos. Terra Group also manages service stations throughout Central America under brands like A, Texaco, and Pacific Oil.
In Peru, the Terra Group invested in the Cold Reserve from Eten dual thermoelectric plant (Lambayeque) in 2015, with a capacity of approximately 223 MW.This marked the group’s initial investment in the country.
Notably,the Terra Group acquired Shell’s assets in Guatemala,El Salvador,Nicaragua,and Honduras. The Romero Group purchased those same Shell assets in Peru in 2005 for US $41 million.
A 2024 report by El Spectador in Honduras ranked Fredy Nasser selman as the second wealthiest individual in the country, according to a study by ERIC and Oxfam on elites, power networks, and the political regime in Honduras.
If the agreement between Terra Group and Romero Group for Primax operations in peru and Ecuador, and the Colombia deal, are approved, the Nasser conglomerate would add 2,185 service stations to its regional network.This could establish it as the leading operator in Colombia, where Primax is currently second in brand recognition.
Primax reported in 2024 that it is indeed the second-largest private network of service stations in latin America,having grown 18-fold in 20 years.
Pro Tip: Understanding the interplay between regional players like Terra Group and established Peruvian companies like Romero Group is crucial for assessing the future of the energy sector in Latin America.
Central American Investment in Peru
Investments from Central America into Peru remain active. This year, the Romero Group completed the sale of 80% of Agricola del Chira to Guatemalan company Ingenio Magdalena for approximately S/ 311 million.
recent years have seen increased investment from Central American countries in Peru’s energy, food, beverage, and fuel sectors, driven by large multinational business groups. CBC, the largest independent beverage company in Central America and the Caribbean, has operated in Peru since 2015, deepening its commitment to the country. Multi Investment Corporation, with investments in food, energy, and agriculture, is another key player.
“The recent sales of Peruvian companies have been to investors in Central america. This is as large investment funds in the United States and other strong markets are not interested in Peru, which could devalue some operations,” Linares concludes.
Key data Summary
| Company | Country of Origin | Key Investments | Estimated Value (USD) |
|---|---|---|---|
| Terra group | honduras | Biomax (Colombia),service Stations (central America),Cold Reserve (Peru) | Billions (estimated) |
| Romero Group | Peru | Energy (Central America),Primax (Peru,Ecuador,Colombia) | Billions (estimated) |
| Threelands Energy | UK | Energy acquisitions in Latin America | N/A |
Looking Ahead
What impact will Terra Group’s expansion have on energy prices and competition in Peru? How will these investments shape the future of the energy sector in Latin America?
The trend of Central American companies investing in Peru reflects a broader shift in regional economic dynamics. Factors driving this trend include political stability in Central America, a desire for diversification, and attractive investment opportunities in Peru’s growing economy. This trend is expected to continue, with potential for further consolidation and expansion in key sectors.
Frequently Asked Questions
- What is Terra Group? Terra Group is a Honduran conglomerate with diverse interests in energy, real estate, infrastructure, and beverages, operating across eight countries.
- Who is Fredy Nasser Selman? Fredy Nasser Selman is the founder and leader of Terra Group, considered one of Honduras’ wealthiest individuals.
- What is Threelands Energy? Threelands Energy is a UK-based company formed by the Romero Group and Terra Group to acquire and operate energy companies in Latin America.
- What is the status of the Primax deal? The sale of Primax Colombia and the strategic alliance with Primax Peru and Ecuador are pending regulatory approval.
- Why are Central American companies investing in Peru? central American companies are investing in Peru due to its growing economy and attractive investment opportunities.
we hope this article provided valuable insight into the evolving energy landscape in Latin America. Share this article with your network and join the conversation in the comments below! Subscribe to our newsletter for more in-depth analysis and breaking news.
