EDP / EDPR : Acquisition of Brazilian renewables by EDP (from EDPR)

Research evidence excerpt

EDP / EDPR : Acquisition of Brazilian renewables by EDP (from EDPR)

EQUITIES

UTILITIES & CLEAN ENERGY

EDP / EDPR

FLASH NOTE

Acquisition of Brazilian renewables by EDP (from EDPR)

19 MAY 2026 Securities Research Report Production time: 21:01* (London time)

Research Analyst & Publishing Entities

Manuel Palomo BNP Paribas SA (+34) 91 114 83 07 manuel.palomo@bnpparibas.com

BNPP View: Our assessment of the announced transaction is that it makes strategic sense for EDP: it fully

integrates all Brazilian operations (generation, trading and supply) as well as for EDPR that releases capital

that can be redeployed in more attractive markets (e.g., the U.S.) or used to curb asset rotations and meet

deleveraging targets. That said, we are not strong advocates of inter-company deals, and the price paid—just

above €0.8 million per MW—appears slightly more favourable to the buyer than to the seller. We

rate both EDP and EDPR Outperform.

What happened?

After the market close EDP and EDPR announced the sale by EDPR of its Brazilian operations to parent company

EDP.

EDPR disclosed the signing of an agreement for the sale of 100% of its subsidiary EDPR Brasil which includes all

EDPR’s operating and development activities in Brazil, to EDP, for a total consideration of c.R$4.1bn (c.€0.7bn,

considering a 6.0 EUR/BRL exchange rate), subject to customary adjustments until closing of the transaction, which

implies an enterprise value of c.€1.5bn. EDPR Brasil operates a total installed capacity of 1.8GW (1.1GW wind onshore

and 0.7GW solar utility scale).

Given the limited market prospects for greenfield utility-scale renewables development in Brazil, EDPR 2026-2028

business plan did not include any capacity growth target in this market. Closing of the transaction is expected by