Chinese takeover bid to Portuguese utility enters new phase in Brussels within the next few weeks
During the next few weeks the takeover bid enters a new phase, in which the Chinese corporate will proceed with the regulatory filings necessary for the takeover's registration at the EU level.
Over the next few weeks, the takeover bid enters a new phase, as CTG will progress with the regulatory filings within the European Commission’s DG for Competition, in compliance with the requirements set by the European authorities.
Last Friday, Reuters announced that CTG had halted talks with the European Commission, over a month ago, and that the takeover bid’s file still missed some key elements, not allowing for the European authorities to formally analyse CTG’s takeover initiative.
Additionally, ECO’s sources confirmed that several weeks have passed since the Chinese corporate communicated substantially with Brussels, with the 9 billion euros business entering a stillness moment as no relevant progress was made.
As such, it is expected that during the next few weeks the takeover bid enters a new phase, in which the Chinese corporate will proceed with the regulatory filings necessary for the takeover’s registration at the EU level, which, according to ECO’s sources, shall happen by the end of this month and the beginning of February.
The formal registry at the Commission’s DGComp is a mandatory requirement for the takeover bid to be accepted by EU regulators.
To Reuters, a source from the Chinese company confirmed that “CTG continues to progress with all regulatory filings, continuing to work with a full suite of advisors in discussions with the regulators in different jurisdictions and in the fulfillment of all the prior conditions for the launching of the voluntary tender offer for EDP”.
Mexia, the Portuguese utility’s CEO, was interviewed by CNBC’s reporters during the World Economic Forum meeting in Davos, in which he noted that “we need clarity for regulatory matters”, and addressing EDP’s investors he assured that “we are doing what we need to do”.
Reuters also noted last Friday that the tension between the US and China might become an inconvenient issue which threatens the takeover’s success, as the deal is facing “hurdles in the United States, given that EDP’s renewables arm, EDP Renovaveis SA (EDPR), has around $7 billion of assets in the country, making it subject to regulatory approval there”. A banking source contacted by the news agency said that “the anti-Chinese sentiment” growth in Europe might be discouraging CTG.
