Acquisition of horizon wind energy by EdP

Abstract

At the beginning of 2007, EdP, a Portuguese electricity utility was studying the potential acquisition of Horizon Wind Energy. Owned by Goldman Sachs, Horizon was a relevant player in the wind energy industry with capacity installed in USA. Requiring that EdP more than doubles its investments in renewables until 2010, this consolidation move would place the company as the 4th largest operator in the world.. Governmental support is just one of the factors that has to be analyzed in this deal, since the strategic implications and risks involved may determine the approval or refusal to go forward with the acquisition, and the price to be paid for the American company.