China Knowledge reported that China Three Gorges Corp, a state owned hydropower enterprise in charge of the most important water project in China has won the bid for a 21% stake in EDP-Energias de Portugal SA from the Portuguese government for EUR 2.69 billion or around USD 3.51 billion.

The Chinese buyers outbid German heavyweight E.ON AG and Brazil Centrais Eletricas Brasileiras SA to acquire the target stakes in EDP which mainly produces and distributes electricity in Portugal and Spain and will also provide China Three Gorges with renewable energy assets in the US with a total output capacity of 3.32 gigawatts.

The Portuguese government said it expects China Three Gorges to invest over EUR 8 billion in EDP to accelerate its market expansion.

A person familiar with the matter said China Three Gorges, which operates the USD 23-billion of Three Gorges Dam on the Yangtze River in China intends to spend EUR 2 billion on minority stakes in EDP renewable energy projects until 2015 adding that EDP has received a EUR 2 billion of credit line from a Chinese bank for up to 20 years.

(Sourced from China Knowledge)