Taqa's Acquisition Efforts in Naturgy Receive Endorsement from Pedro Sánchez
Spanish Prime Minister approves new investment attempts by UAE's Taqa in Naturgy, addressing previous obstacles and geopolitical tensions.
The United Arab Emirates' Taqa has renewed its interest in acquiring a stake in the Spanish multinational Naturgy, following a meeting with Spanish Prime Minister Pedro Sánchez on January 22 in Davos.
During this meeting, Sánchez expressed support for increased Arab investments in Spain and indicated approval for Taqa’s pursuit of Naturgy shares, amidst discussions on the potential withdrawal of a tax on energy companies that had previously stalled investments.
The state fund Mubadala, controlled by Abu Dhabi, also owns a stake in Spain's Moeve, which was formerly Cepsa, and has shared business interests with Taqa.
Sources indicate that upon returning to Abu Dhabi, Khaldoon Al Mubarak, CEO of Mubadala, informed Taqa's partners of the dialogue, leading to renewed efforts by Taqa to establish a foothold in Naturgy after earlier negotiations in 2024 ended unsuccessfully.
In February, Taqa re-engaged with Criteria Caixa, which holds a 27% stake in Naturgy, to advocate for a stake acquisition, amid ongoing discussions with other shareholders.
Past negotiations saw Taqa attempting to acquire a full 100% stake in Naturgy, reportedly with Criteria Caixa’s backing; however, these efforts were ultimately unsuccessful.
Recent market reports suggest Taqa is currently negotiating to purchase the 20% stake held by the CVC fund, which has struggled to find a buyer for some time.
Complications arise from Naturgy's shareholder structure, which mandates alignment with Criteria Caixa, a key player that affirms the Spanish nature of the firm, and other significant shareholders including Blackrock, which holds another 20% following its acquisition of GIP, and the Australian fund IFM, which has a 17% stake.
Blackrock is reportedly open to divesting its shares, but any sale involving Criteria or IFM could trigger a mandatory bid for the entire company if their holdings surpass 30%.
Additionally, geopolitical tensions complicate Taqa’s ambitions, particularly due to Algeria's concerns over the implications of such a shift.
Algeria’s state-owned Sonatrach holds a 4% stake in Naturgy and is a partner in the Medgaz gas pipeline collaboration with the company.
Algeria has historically maintained a sensitive relationship with Spain, particularly following Spain’s shift in policy regarding Western Sahara, favoring Moroccan claims and leading to decreased commercial relations since 2022, aside from gas supplies.
Currently, Criteria Caixa has notified the CNMV that it is not in discussions regarding changes to its stake in Naturgy.
Meanwhile, reports have surfaced indicating Taqa executives visited Madrid to meet with Criteria Caixa amid the ongoing dialogues.
During this meeting, Sánchez expressed support for increased Arab investments in Spain and indicated approval for Taqa’s pursuit of Naturgy shares, amidst discussions on the potential withdrawal of a tax on energy companies that had previously stalled investments.
The state fund Mubadala, controlled by Abu Dhabi, also owns a stake in Spain's Moeve, which was formerly Cepsa, and has shared business interests with Taqa.
Sources indicate that upon returning to Abu Dhabi, Khaldoon Al Mubarak, CEO of Mubadala, informed Taqa's partners of the dialogue, leading to renewed efforts by Taqa to establish a foothold in Naturgy after earlier negotiations in 2024 ended unsuccessfully.
In February, Taqa re-engaged with Criteria Caixa, which holds a 27% stake in Naturgy, to advocate for a stake acquisition, amid ongoing discussions with other shareholders.
Past negotiations saw Taqa attempting to acquire a full 100% stake in Naturgy, reportedly with Criteria Caixa’s backing; however, these efforts were ultimately unsuccessful.
Recent market reports suggest Taqa is currently negotiating to purchase the 20% stake held by the CVC fund, which has struggled to find a buyer for some time.
Complications arise from Naturgy's shareholder structure, which mandates alignment with Criteria Caixa, a key player that affirms the Spanish nature of the firm, and other significant shareholders including Blackrock, which holds another 20% following its acquisition of GIP, and the Australian fund IFM, which has a 17% stake.
Blackrock is reportedly open to divesting its shares, but any sale involving Criteria or IFM could trigger a mandatory bid for the entire company if their holdings surpass 30%.
Additionally, geopolitical tensions complicate Taqa’s ambitions, particularly due to Algeria's concerns over the implications of such a shift.
Algeria’s state-owned Sonatrach holds a 4% stake in Naturgy and is a partner in the Medgaz gas pipeline collaboration with the company.
Algeria has historically maintained a sensitive relationship with Spain, particularly following Spain’s shift in policy regarding Western Sahara, favoring Moroccan claims and leading to decreased commercial relations since 2022, aside from gas supplies.
Currently, Criteria Caixa has notified the CNMV that it is not in discussions regarding changes to its stake in Naturgy.
Meanwhile, reports have surfaced indicating Taqa executives visited Madrid to meet with Criteria Caixa amid the ongoing dialogues.
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