UPDATE - EDP rebuffs report on merger talks with Gas Natural
EDPR wind farm in Portugal. Source: EDP Renovaveis SA. License: All rights reserved
EDP - Energias de Portugal SA (ELI:EDP) today denied having held talks with Spain’s Gas Natural Fenosa (BME:GAS) about a potential merger.
Yesterday, Reuters quoted four sources as saying that the two energy groups are holding early-stage discussions on the matter. The news agency noted that such a combination would be worth some EUR 35 billion (USD 39.7bn).
Now, EDP issued a brief statement saying that it “hereby denies the existence of negotiations between the two companies regarding this subject”.
Meanwhile, a major shareholder in one of the two firms told Reuters that such a combination would be considered quite attractive because Gas Natural lacks capacity in Latin America and in the renewables field, where EDP is stronger.
Gas Natural set up a renewable energy-focused subsidiary, called Gas Natural Fenosa Renovables (GNFR), in 2010 to participate in power tenders held in Spain. At the end of 2016, GNFR had a consolidated total installed capacity of 1,104 MW, including 979 MW of wind, 110 MW of mini-hydro and 15 MW of cogeneration and solar photovoltaics (PVs).
Just a few days ago, Gas Natural announced a plan to build over 200 MW of wind farms in the Spanish autonomous community of Galicia for a total cost surpassing EUR 200 million. The company already has 320 MW of wind power generating capacity there, it said.
Meanwhile, EDP has set a goal of surpassing 75% renewables share in its total installed power generating capacity by 2020. In its annual report for 2016, the group said it is targeting 28.5 GW of total installed capacity until the end of the decade.
At the end of the first quarter of 2017, majority-owned renewables arm EDP Renovaveis (ELI:EDPR) had about 10.4 GW of capacity.