US expected to block China Three Gorges’ bid for Energias de Portugal

22 March 2019

The takeover bid launched by China Three Gorges over the entire share capital of EDP – Energias de Portugal will be “blocked” in the United States, said Ambassador George Glass.

The US ambassador to Portugal also told Jornal Económico that there are no conditions for the operation to be approved in the United States because it is a matter of national security.

“EDP controls 80% of electricity in Portugal. From the point of view of the United States, from a business point of view, and from my personal point of view, there should be no foreign entity holding on to your electricity. It must be controlled by the State or privately owned under national regulation. This is not the case with what is happening with EDP, ” the ambassador began.

Glass added that for that reason (national security) the United States federal government openly opposes taking control of one of the leading Portuguese companies by a state group from China.

The ambassador recalled that EDP is present in the US market, where it is the third largest producer of energy from renewable sources, “so under no circumstances will we allow the Chinese to control what EDP has in my country.”

The newspaper wrote that the ambassador went even further when he said, “If China Three Gorges wants to proceed after this warning, the Trump administration has the power to dismantle EDP in the United States through the regulator for foreign investment.”

“If China Three Gorges insists on continuing, CFIUS [Committee on Foreign Investments in the United States] has the power to enforce this sale,” the diplomat said.

The Chinese state-owned group controls 23.35% of EDP’s capital, with Oppidum Capital as the second-largest shareholder with 7.19%. (Macauhub)