CGN Said to Pause $2 Billion Sale of European Renewable Assets

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(Bloomberg) — China General Nuclear Power Corp.’s planned $2 billion sale of its European renewable energy arm is stalling after offers fell short of its price expectations, people familiar with the matter said. 

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A consortium of Brookfield Asset Management and Macquarie Group Ltd. and another led by Thailand’s PTT Pcl were among those that made binding offers for CGN Europe Energy late last year, according to the people. CGN decided to pause the process after these bids came in below the price it was seeking, they said. 

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While the potential disposal remains on hold, CGN could decide to revive it later this year, one of the people said, asking not to be identified discussing confidential information. Spokespeople for Brookfield and Macquarie declined to comment. Representatives for CGN and PTT didn’t immediately respond to requests for comment.

Chinese state-owned companies have been stepping up reviews of overseas portfolios as they look to optimize returns on their investments. Oil giant Cnooc Ltd. has been considering a sale of its UK North Sea portfolio for as much as $3 billion, Bloomberg News reported last year. 

Founded in 2014, Paris-based CGN Europe Energy develops, operates and invests in wind, solar and other alternative energy projects across France, Belgium, the Netherlands, UK, Ireland, Sweden and Senegal, according to its website. Its total investment in Europe and Africa has exceeded €3 billion ($3.2 billion) since inception, while its installed capacity has reached 2.4 gigawatts.

—With assistance from Kathy Chen and Anuchit Nguyen.