China Three Gorges Corp. may be evaluating a transaction to take control of EDP - Energias de Portugal SA's assets in Brazil, Bloomberg News reported June 4, citing people with knowledge of the matter.

The Chinese state-owned power company is said to be looking at combing its assets in the South American country with EDP's business and then potentially own a majority stake in the combined entity. EDP - Energias do Brasil SA, which has a market value of $3.2 billion, released a statement denying knowledge of any taking control agreement, according to Bloomberg.

China Three Gorges dropped its $10.2 billion takeover bid for EDP in April, after the Portuguese company's shareholders kept a cap on voting rights. China Three Gorges is the largest EDP shareholder with a 23% interest.