ABU DHABI: China Southern Power Grid Co. is in talks to acquire about 10 percent of Abu Dhabi National Energy Co. (TAQA), Bloomberg reported citing people familiar with the matter.
The Chinese state-owned firm is in discussions with banks about financing for the potential purchase, the people said, asking not to be identified due to information confidentiality.
The 10 percent stake in TAQA could be worth about $4.2 billion based on its current share price.
The transaction would be the biggest overseas acquisition by a Chinese company this year, if successful, according to data compiled by Bloomberg.
The negotiations are ongoing and there is no certainty about reaching an agreement as another buyer could still emerge, the people said.
TAQA in March unveiled plans to invest 40 billion dirhams ($10.88 billion) in the UAE as it boosts solar projects and reduces exposure to hydrocarbons. The energy company said developing highly efficient solar power and reverse osmosis desalination technology will be a big part of the plan.