State-owned utility firm China Three Gorges has halted discussions with European Union regulators over its plans to acquire Portugal’s Energia de Portugal (EDP) for $10.3 billion, two sources told Reuters.
China Three Gorges launched a bid to take over EDG, in which it already holds a 23% stake, in May last year, but the deal has progressed slowly. The Chinese firm has not had any communication with EU officials for more than a month, according to the sources.
CTG has not yet finished regulatory filings for the deal in Europe and the United States, but the company has not indicated that it wishes to abandon the acquisition.
According to the sources, CTG’s interest in the deal may have fallen due to several factors, including a change in management at the firm, EU proposals to tighten foreign investment rules, and increases in European energy tariffs.