Summary Box: Portugal sells utility stake to China

AP News
Posted: Dec 22, 2011 12:43 PM
Summary Box: Portugal sells utility stake to China

CHINA POWER: Portugal will sell the state's 21.35 percent stake in national utility Energias de Portugal to China Three Gorges Corp. for $3.5 billion. Three Gorges Corp. beat rival bids from German gas and electricity company E.On AG and Brazilian utilities Eletrobras and Cemig SA in what was Portugal's biggest-ever privatization.

RAISING CASH: The deal was the first in a raft of sell-offs that aim to earn at least $6.5 billion to ease Portugal's crippling debt burden. The country needed a $102 billion bailout earlier this year to avoid bankruptcy.

BEIJING BOOSTS EUROPE: Cash-rich Chinese companies have in recent years made a string of investments in European countries hit by the continent's sovereign debt crisis. Three Gorges promised to invest in developing EDP's manufacturing capacity for renewable energy equipment and in Portugal's green energy sector.