The EDP – Energias de Portugal group may propose the formation of a partnership with China Three Gorges (CTG) to allow this group to expand its presence in Brazil and Latin America, Reuters reported.
The news agency also said that this partnership would go ahead only if the takeover bid for the entire share capital of the EDP group, with an estimated total cost of 9 billion euros, failed.
The takeover bid presented by China Three Gorges in May 2018 has been moving slowly, given the high number of approvals it needs from regulators in the countries where the group operates, such as Brazil, the United States and Spain, in addition to the European Union itself.
Chinese state-owned China Three Gorges owns 23% of EDP’s capital and has increased its investments in Europe but, as Reuters reported, the tightening of the European Union’s scrutiny of foreign investment may affect this expansion.
EDP owns 51% of EDP Brasil, which has generation and transmission assets and controls power distributors in the Brazilian states of Espírito Santo and São Paulo.
CTG operates hydroelectric and wind farms in Brazil with 8.2 gigawatts of installed capacity, and the possible merger with EDP Brasil would make the partnership take the lead in electric power production in the country in the private sector, overtaking French company Engie. (Macauhub)