China Three Gorges Corporation has agreed to acquire Duke Energy's 2,090-megawatt business in Brazil for $1.2 billion, according to Duke Energy.

The transaction is expected to be completed in the first half of 2017, said Duke, the biggest US power company by generation capacity.

The business, spanning Argentina, Brazil, Chile, Ecuador, El Salvador, Guatemala and Peru, accounted for five percent of Duke Energy's total operation revenue in 2015.

Duke Energy said the after-tax proceeds from the transaction were expected to be used to reduce Duke Energy's holding company debt.

The company had long-term debt, including items, of around $39.93 billion as of June 30, according to the Financial Review.