EDP buyout by Engie mooted in French press

French business daily, BFM, has published a report claiming Engie are examining a potential bid for Portugal‘s EDP.

Shares in EDP rose following the news. Engie would not comment on the report, but the business daily quoted unnamed sources close to the French company as back-up for the story.
EDP shares were up 5.4 percent at 3.23 euros in early session trading, while Engie shares fell 0.5 percent.

At that price, EDP has a stock market capitalization of around EUR11.7bn ($14.4bn), while Engie has a market capitalization of around EUR33bn

BFM Business added that any final decision as to whether or not to go ahead with a bid would not be made until Engie’s new boss Jean-Pierre Clamadieu formally took up his position in May.

Clamadieu had said in February that Engie should consider acquisition opportunities. Last month, Engie said its three-year transformation plan had been completed ahead of schedule, as it returned to profit after two years of losses and posted a higher-than-expected dividend.

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