China Three Gorges to buy Portugal's stake in EDP

Portugal’s government announced that China Three Gorges has won the bidding for a 21% stake in EDP-Energias, as the country begins selling state-owned assets, The Wall Street Journal reported. The offer of US$3.51 billion will mark the first time a mainland Chinese firm has taken a significant stake in southern Europe. A key benefit for state-controlled China Three Gorges is access to EDP’s assets in Brazil. The Portuguese company is a major producer of renewable energy there, serving two million customers. Portugal is selling key assets as part of its US$102 billion bailout agreement with the EU and IMF. Portugal expects China Three Gorges will invest US$10 billion in EDP’s expansion plans.