UAE’s Taqa in talks for potential takeover of Spanish energy player Naturgy

Abu Dhabi National Energy Company (Taqa) is reportedly in discussions with Naturgy’s three largest shareholders about a potential takeover of the Spanish energy player, Cinco Dias reports, citing market sources. Spanish holding company Criteria — Naturgy’s biggest shareholder — said it is negotiating with an unnamed investor group that has in turn been talking with some of Naturgy’s major shareholders about a potential “partnership agreement,” according to Reuters. However, Criteria said it is not part of the talks between the investor group and other Naturgy shareholders.

Who owns what: Criteria holds a 26.7% stake in Naturgy, making it the energy company’s largest shareholder. Private equity investment funds CVC Advisers and Global Infrastructure Partners (GIP) each hold a little over 20% in the company.

What Taqa could be getting: Adnoc’s renewable energy subsidiary has reportedly been in talks to acquire 40% in Naturgy, but could be required to launch a mandatory tender offer (MTO) for 100% of the company, according to Cinco Dias. Spanish law dictates that any offer to buy more than 30% of a company automatically triggers an MTO requirement.

Naturgy is big on renewables: The company’s profits rose over 20% last year on the back of a strong performance in renewables, Reuters reported earlier this year. Naturgy plans to implement up to 1.2 GW of new renewable energy capacity in 2024 and 2.3 GW in 2025, funneling 90% of investments towards energy transition projects with EUR 1.73 bn earmarked for renewable energy generation.