Chinese Firm Outbids Brazilians for EDP Stake

China’s Three Gorges managed to outmaneuver its Brazilian rivals and won a coveted 21.35% stake in Energias de Portugal (EDP). The Chinese company paid EUR2.7bn ($3.5bn) for a package of 780m shares or EUR3.45 per share sold. The price offered came at a 53.6% premium over the share price registered on December 21, says Parpublica, the Portuguese state-owned holding company responsible for the sale. Officials at Parpublica and Three Gorges could not immediately be reached for additional details. China’s successful bid beat three other rivals for the assets, namely Brazil’s Cemig and Eletrobras, as well as Germany’s E.ON, but no details were immediately available on the other offers. The Portuguese utility company is a major player in Latin America with a whole portfolio of power generation and distribution assets in Brazil, one of the most interesting aspects of the acquisition for the Brazilian utilities involved in the process.