Brazil: CADE approves China Three Gorges’ acquisition of Portugal’s EDP

Brazil’s Administrative Council of Economic Defense (CADE) has decided to grant unrestricted approval for the proposed acquisition of Portuguese energy group EDP Energias de Portugal by Chinese company China Three Gorges (CTG), as reported in the official gazette on Monday, September 24.

The CADE’s analysis follows the announcement by CTG, which is preparing a takeover bid for EDP, controller of EDP Brasil, which operates electricity distributors in the South American country and owns power generation and transmission assets.

“The operation … consists in the acquisition, by CTG Europe, of unitary control over the EDP Group, to be carried out through a voluntary public acquisition offer… with the approval of the operation, CTG is expected to gain at least 50 percent of the voting capital of the EDP Group” explained Cade in its final opinion on the matter.

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