Three Gorges Is Said in Talks for Renewable Assets in Spain

China Three Gorges Corp. is in talks to buy Spanish renewable assets owned by a group of billionaires, as the Chinese energy giant seeks to double down on the southern European country, people with knowledge of the matter said.

The state-owned company is seeking to buy a portfolio of mostly wind energy assets in Spain with about 400 megawatts of capacity, in a deal that could be valued at 400 million euros ($480 million) to 500 million euros, the people said. Discussions are advanced and an agreement could be reached as early as this month, the people said, asking not to be identified because the deliberations are private.

The assets are owned by Cefiro, an investment firm led by the Spanish billionaire Masaveu family. Other investors include Korys, the investment arm of the Belgian billionaire Colruyt family, and a group of Portuguese investors led by Exus Management Partners. They acquired the assets from private-equity firm Bridgepoint in 2016 for an undisclosed amount, according to a press release. The portfolio, previously known as Borawind, includes about eight wind farms located in the region of Burgos, north of Madrid.

Negotiations could still be delayed or fall apart and no final decision has been made, the people said. Representatives for Three Gorges, the Masaveu family, Korys and Exus didn’t immediately respond to requests for comment.

The investment would follow Three Gorges’s purchase last year of 13 Spanish solar park assets with more than 500 megawatts of capacity owned by X-Elio Energy SL from investment firm Brookfield Renewable Partners LP and private equity firm KKR & Co.

The Chinese firm was also among the final bidders for Grupo T-Solar, a green energy firm with a presence in Spain and Italy, which was acquired in December by infrastructure investment manager I Squared Capital for 1.5 billion euros.

Three Gorges is the biggest shareholder in EDP-Energias de Portugal SA, in which the Masaveu family also holds a minority stake, according to data compiled by Bloomberg. Three Gorges issued a statement last month reiterating its commitment to EDP after putting a 2.5% stake in the company on the market. The sale raised 534 million euros, leaving the state-owned firm with a 19% stake.

©2021 Bloomberg L.P.

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