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China Three Gorges stops EU talks over EDP bid - report

EDPR wind farm in Portugal. Source: EDP Renovaveis SA. License: All rights reserved

January 28 (Renewables Now) - China Three Gorges Corp's talks with the European Commission over its bid for utility Energias de Portugal SA (ELI:EDP) and its renewables arm have been put on hold and there is no certainty that the state-owned firm would push on with the deal, Reuters reported Friday citing sources.

Three Gorges, which already owns 23.27% of the target company, has been progressing slowly with its offer as the Chinese company has reportedly faced a tougher-than-expected review process as well as unexpected leadership changes in the company.

When contacted by Reuters, the Chinese company noted it is progressing with the regulatory filings to meet all the conditions for the tender offer.

Three Gorges first announced in May, 2018 its EUR-9.1-billion (USD 10.38bn) offer for the rest of EDP, followed by a subsequent compulsory offer for the renewables unit EDP Renovavies at a price of EUR 7.33 per share.

Reuters reported in June that Three Gorges has been looking for a European buyer for the US renewable energy assets of EDP in an effort to assuage national security concerns in the US. EDP, meanwhile, was said to be pressing for an offer higher than the originally proposed EUR 3.26 apiece, Bloomberg reported in November.

(EUR 1 = USD 1.141)

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