China’s state-owned power company China Three Gorges (CTG) launched a bid to take control of Portugal’s biggest company and electricity operator EDP.
The total value of the proposed deal is 9.07 billion euros ($10.83 billion), excluding a 23 percent stake already owned by CTG. The company said in its preliminary offer announcement that it seeks to reach at least a 50 percent voting stake plus one share in EDP. It also offered 7.33 euros a share for its wind power unit, EDP Renovaveis (EDP Renewables).
If the deal succeeds, it would be the latest in a series of acquisitions by Chinese companies in Portugal. The proposed offer may test the European Union’s readiness to give control of major infrastructure firms in member states to China. However, it could also run into problems with U.S. authorities since EDP Renovaveis is a major player in its wind energy market.
EDP’s market capitalization was nearly 11.4 billion euros as of 11 May, and it has a net debt of 13.8 billion euros.