(Bloomberg) -- China Three Gorges Corp. is considering acquiring X-Elio Energy SL’s Mexican renewable energy business as the state-owned firm seeks to expand its international footprint, according to people familiar with the matter.

X-Elio’s portfolio in Mexico, where it has about 535 megawatts of projects in operation, could be valued at about $400 million in a potential transaction, the people said.

Considerations are ongoing and no final decision has been made, said the people, asking not to be identified because the matter is private. Other bidders for the assets could still emerge, the people said.

China Three Gorges didn’t immediately respond to requests for comment made on a public holiday in China. A representative for Madrid-based X-Elio, which is owned by Brookfield Renewable Partners LP and KKR & Co., declined to comment.

Mexico has recently drawn interest from other Chinese power companies. Last year, China’s State Power Investment Corp. bought Zuma Energia via its Hong Kong-based unit China Power International Holding for an undisclosed sum.

China Three Gorges and X-Elio have already done other deals together. In 2020, the Chinese energy company bought 13 Spanish solar park assets with more than 500 megawatts of capacity from X-Elio. That deal was followed by the purchase of more than 400 megawatts of Spanish renewable assets from a group of billionaires. 

China Three Gorges is selling a 25% stake in its overseas asset portfolio to private investors including CNIC Corp. and GIC Pte for as much as $2 billion, Bloomberg News reported in July. It plans to use part of the funds to pursue acquisitions and expand its international business, people familiar with the matter said at the time.

Founded in 2005, X-Elio has 25 solar plants in operation, according to their website. It has a presence in 10 countries spanning Europe, Asia, the U.S. and Mexico.

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