Taqa in talks for potential takeover of 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.