Sonatrach to own 20% of EDP shares

Algeria-Sonatrach is closer to acquire 20% shares of the Portuguese Company of Electricity “EDP”.Owned by the Portuguese government, the company was offered for privatization, in collaboration with the Spanish company of energy “Gas Natural Fenosa”.

• Sources in the Spanish energetic industry told Expansion newspaper, which is close to “Gas Natural Fenosa” that Sonatrach and the Spanish company made a joint bid for the acquisition of nearly 21% of EDP shares which is offered for privatization, falling within the plan of economic austerity endorsed in Lisbon, adding that both parties preferred providing a joint bid for the unification of efforts and to win the deal, in the framework of the recent agreement between Sonatrach and Gas Natural Fenosa following the acquisition of 3.85% of  the Spanish company’s shares, which highlights the of future partnership between the two parties in Sonatrach projects.

• The same sources, quoted by the Spanish newspaper Expansion, suggest that Sonatrach and the Spanish company are likely to win the bid by the Portuguese government, and which will enter a crucial phase as of next week, due to the tight ties between EDP and Sonatrach

• Sonatrach is already the owner of 2.23% shares in EDP and wants to raise them to 5%. Sonatrach’s offer with its partner will be a rival party to the German company E.ON and the Brazilian Company of Energy “ELECTROBRAS”.

• One of the reasons that favored Snoatrach and Gas Natural Fenosa to win the auction was a statement by the Portuguese PM who asserted that the party wining the bid will not be based on the best offer, but on the offer which offers more service to the Portuguese company of Electricity “EDP”, in a clear reference to Sonatrach and the Spanish Gas Natural Fenosa.