Chinese power company plans €9 billion takeover of Portuguese utility

Power company China Three Gorges has announced a cash tender offer for Energias de Portugal (EDP).

The Chinese company already owns 23.27% of EDP. The total tender offer value is equal to €11,848 million for 100% of EDP’s share capital and to €9,074 million excluding the shares already owned by CTG.

If the offer is successful,  CTG will launch a mandatory tender offer for 100% of the share capital of EDP’s renewables business, EDP Renováveis.

CTG said the transaction “follows six years of successful partnership between EDP and CTG that has contributed to a more robust EDP and has delivered significant value creation for its shareholders”. It wants EDP to “secure its future as a leading global utility in a fast-evolving sector”.

Lu Chun, chairman of China Three Gorges Corporation, parent company of CTG, said: “We are strongly committed to preserving EDP’s Portuguese identity, with headquarters in Lisbon and status as a publicly listed entity in the Lisbon stock exchange, as well as the highest standards of corporate governance.

Our success will be directly connected to EDP’s future performance and growth as we intend to strengthen the industrial collaboration that has made us successful partners and contributors to the Portuguese economy.”