Brussels gives 'green light' to EDP's purchase of Viesgo's renewable energy business

The European Commission today gave the green light to the purchase of the renewable energy business by Spanish company Viesgo by the Energias de Portugal (EDP) group, considering that the transaction “does not raise competition concerns”.

In a statement, the European institution points out that it "approved, under the Community Merger Regulation, the acquisition of Viesgo Infraestructuras Energéticas de España by EDP de Portugal".

"The Commission concluded that the proposed acquisition does not raise competition concerns, given its limited impact on the relevant markets", justifies Brussels in the press release.

The community executive also refers to the EDP group as “the largest producer, distributor and supplier of electricity in Portugal, with significant operations in the electricity sector outside Portugal, including Spain”, while Viesgo “operates mainly in the production and supply of electricity from renewable sources in Spain and Portugal and in electricity distribution in Spain ”.

This transaction was examined under the merger analysis procedure.

On the 15th of July, EDP Renováveis ​​informed the Portuguese market that it had reached an agreement with the funds managed by Macquarie Infrastructure and Real Assets for the purchase of Viesgo's renewable energy business, with an enterprise value of 565 million euros.

On that day, EDP announced a capital increase of more than one billion euros to finance the purchase of the Spanish company Viesgo, according to a communication to the Securities Market Commission (CMVM).

“Viesgo's transaction will be partially financed through a public subscription offer of 1.020 million euros, a capital increase with fully guaranteed subscription up to a maximum of 309.143.297 new EDP shares, representing a total of approximately 8,45, XNUMX% of EDP's share capital, with subscription reserved for shareholders in the exercise of their preemptive rights and other investors who acquire subscription rights ”, according to information then sent to the CMVM.

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