Market regulator ends Three Gorges takeover bid for EDP

The applications for registration of the takeover bid for Portuguese power company EDP – Energias de Portugal and EDP Renováveis by the China Three Gorges group were rejected by the Portuguese Securities Market Commission (CMVM), the regulatory body announced in Lisbon.

The CMVM, in a statement, said that the decision was based on the fact that the conditions set out in the preliminary announcement by the Chinese state group had not been met.

The regulator thus complied with the notice issued about ten days before the General Meeting of the EDP group outlining that the amendment of the group’s articles of association, in particular with regard to the 25% limit on voting rights, was an essential condition for the operation to move forward.

On 24 April 2019, the General Meeting of EDP did not approve a proposal to amend its by-laws.

“In this respect, a requirement for the registration and subsequent launch of the offer on EDP was not met and, as a result, on EDP-R, was verified and, therefore, the Board of Directors of CMVM decided, on 30 April 2019, to reject applications for registration of those public takeover bids,” the statement concluded.