China’s CCCC Weighs Buying Stake in Portugal’s Mota

(Bloomberg) -- China Communications Construction Co. is considering acquiring a minority stake in Portuguese builder Mota-Engil SGPS SA as the Chinese company seeks ways to expand its overseas footprint, people familiar with the matter said.

State-owned CCCC has held talks with potential advisers about buying as much as 30% of Porto-based Mota-Engil, according to the people. Deliberations are at an early stage, the people said, asking not to be identified because the information is private.

Founded in 1946, Mota-Engil runs infrastructure projects in Europe, Africa and Latin America, according to its website. Its business areas also include environment, transport concessions, energy and mining. Mota-Engil shares have climbed 17% this year, giving the company a market value of 449 million euros ($499 million).

There’s no certainty CCCC will make a formal approach to Mota-Engil, and it could opt against pursuing a deal, according to the people. Other buyers for a stake in the business could also emerge, they said.

A representative for CCCC couldn’t immediately comment. A representative for Mota-Engil said the issue was a shareholder matter and declined to comment further. Mota-Engil Chairman Antonio Mota said his family, which controls about 65% of the construction company, hasn’t had contact with CCCC.

Mota-Engil rose as much as 5.8% to 1.943 euros in Lisbon following the report about CCCC and after the company announced a new mining contract in Guinea, according to Antonio Pedro Fonseca, head of trading at Lisbon-based Banco Invest.

CCCC, listed in Hong Kong and Shanghai, is involved in building transportation infrastructure like ports, roads, bridges and railways as well as dredging and heavy machinery manufacturing. It also runs international project contracting, import and trading services.

Chinese companies have been keen to expand in Portugal over the past few years. State-owned energy giant China Three Gorges Corp. is the largest shareholder in Portuguese utility EDP-Energias de Portugal SA. Fosun International Ltd. is the biggest shareholder in lender Banco Comercial Portugues SA and has also bought insurance companies in the country.

--With assistance from Henrique Almeida.

To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Jonas Bergman, Joao Lima

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