State-owned Chinese company China Three Gorges Corporation (CTGC) will take over Portuguese utility EDP. CTGC has been a shareholder in the company since 2011 and currently owns 23 percent, while fellow Chinese player CNIC owns a further 5 percent stake. Now, with a EUR 9.07 billion bid, the Chinese company will buy the remaining share of the company at a premium of just under 5 percent, reports Portuguese newspaper Expresso.
The Chinese company has allegedly been interested in taking over EDP for over a year. The utility, which presented a profit decline of 23 percent in Q1 Friday, had also been highlighted as a potential acquisition for French Engie, Italian Encel or Spain's Natural Gas Fenosa. However, China Three Gorges is the first official bidder.