June 26, 2018 Read More →

EDP’s U.S. wind, solar assets may spark bidding war

Bloomberg:

France’s Engie SA and Denmark’s Orsted A/S are among suitors considering a bid for the 7.6 billion-euro ($8.9 billion) renewables unit of EDP-Energias de Portugal SA, according to people with knowledge of the matter, adding a potential new twist to China Three Gorges Corp.’s pursuit of the company and its parent.

Engie and Orsted are working with advisers on evaluating offers for all or part of EDP Renovaveis SA, the people said, declining to be identified as the discussions are confidential. Paris-based Engie is most interested in the firm’s U.S. portfolio, but is considering making a bid for the complete renewables unit, two of the people said. The deliberations are in early stages, and the suitors may opt not to make a formal offer, they said.

EDP Renovaveis is also drawing interest from other European utilities seeking to expand in renewables, the people said. Potential buyers are preparing for the Chinese firm to sell certain assets to secure regulatory approval should its takeover offer succeed, the people said. Engie could even team up with the Chinese to buy certain assets to help facilitate U.S. approval, they said.

The Chinese firm’s bid would be subject to several regulatory approvals, including from the Committee on Foreign Investment in the U.S. Three Gorges said in the offer announcement on May 11 that it doesn’t rule out accepting some “mitigation measures’’ from that regulator.

EDP’s North American unit controls a sprawling clean energy portfolio, with whole or partial stakes in more than 5,600 megawatts of wind and solar farms. Selling it all at once “would be the biggest renewable-energy portfolio disposal ever,” Angus McCrone, chief editor of Bloomberg NEF, said in an email.. EDP’s North American portfolio includes 45 wind farms and five solar farms, according to a list the company provided in May. Most of the North American plants are in the U.S.

More: Engie weighs offer for $8.5 billion EDP Renovaveis

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