Banco Sabadell | Portugal’s EDP and Australia’s fund Macquarie have created a joint venture to acquire Spain’s Viesgo, the country’s fourth largest electricity company. EDP is acquiring Viesgo’s 500 MW of renewable assets for 615 million euros. As a result, EDP will hold 75.1% of the capital of the new Viesgo and Macquarie will hold the remainder. This new company would have been valued at 2.7 billion euros. Although a priori the creation of a new stronger competitor could mean pressure on the sector, we think it will have little impact since the greatest competitive pressures in the energy sector come from the commercialization leg.