EDP and Naturgy : merger in utilities

• Autor(a) principal: Rocha, Francisco Rodrigues Ferreira da
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/25886
• topic: M&A; Energy Naturgy; GNF; EDP; China; Three Gorges; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

When I chose the Mergers and Acquisitions (M&A) seminar for my thesis, I did so due to the internship I was attending at the time in a M&A department. There, I was allocated to the Technology, Media and Telecoms (TMT) and the Energy sectors, hence my choice. At the time, rumors started on a possible merger between Naturgy (ex-GNF) and EDP – Energias de Portugal, which didn’t amount to anything. My internship reached its end, but not my interest in the merger possibility and the sector. Throughout this thesis, I intend to learn if the merger would make sense for both sides, and which obstacles would Naturgy face if it had continued with their merger proposition. However, in May, China Three Gorges, a shareholder of EDP, decided to make an acquisition offer for the rest of the shares. This event added questions to my thesis: How did it affect EDP, and how would it influence a merger proposition from Naturgy? After a literature review on valuation and M&A, and an industry and company overview, I reached a valuation for both and a merger proposal, along with the respective analysis. I also give an insight on China Three Gorges’ offer.