Portugal has taken the first step to fulfilling the terms of its EU-IMF bailout, by selling a major chunk of the country’s biggest company to the Chinese.
The government is getting rid of most of its stake in the electricity firm EDP – more than 21 per cent – to China’s Three Gorges Corporation for 2.7 billion euros.
The remaining four per cent of the government holding can not be sold until next year.
On top of that Three Gorges will provide a further four billion euros in financial support, and has promised to build a wind-turbine factory.
EDP’s renewables business is the fourth largest wind energy company in the world, and makes the Chinese the global leader in the sector with a major foothold in Europe.
The sale was a precondition of the 78-billion euro EU-IMF bailout to keep debt-laden Portugal afloat.