China Three Gorges wants EDP assets in Brazil

According to Bloomberg, China Three Gorges (CTG), the major shareholder of EDP, wants to merge its own existing assets with those of the Portuguese company in Brazil. If the deal moves forward, CTG might even be the one controlling the new company created out of the merger.

At this point, only low-level talks have taken place, as revealed by the American press agency. The Chinese State-owned enterprise attempted to acquire the remaining capital of EDP in May 2018. The bid-offer was not successful and was followed by several strategic decisions taken by EDP, including the sale of assets.

These events take place only one month after EDP announced a joint-venture with French Engie. The project focuses on off-shore wind energy and guarantees equal shares to both companies. Their goal is to become world-leaders in that specific market, aiming at entering certain Asian markets such as Japan and South Korea. During the announcement, António Mexia, EDP’s CEO, assured that the deal had nothing to do with the failure of CTG’s offer and even added that EDP’s major shareholder gave its consent to the luso-french partnership.