The Portuguese market regulator CMVM (Securities Market Commission) has set a strict time deadline for China Three Gorges (CTG) to take over the 76.7% stake it doesn't own in Portuguese energy group EDP. CTG is already EDP's largest stakeholder with a 23.3% interest and announced plans to acquire the remainder of EDP's shares in May 2018 (€3.26/share offer, valuing the group €9bn), on the condition that a 25% voting right cap was removed. EDP's shareholders will meet in general assembly on 24 April 2019 to vote on scrapping the voting right cap. If this cap is removed, the CMVM will require China Three Gorges to complete the other conditions (mainly regulatory approvals) within 45 days, to formally launch the takeover offer.
CTG purchased a 21.35% interest in EDP in 2011, when the Portuguese government completed EDP's privatisation in the wake of the country’s bailout. If completed, the transaction would be the largest Chinese takeover of a European company. CTG plans to use EDP as a platform for further international expansion in renewable power. EDP would lead in the European and South American markets, while CTG would continue to lead in Asian markets and would significantly increase its presence in the Brazilian and US markets.
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