{"id":90003,"date":"2024-03-14T00:00:00","date_gmt":"2024-03-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/adnoc-bp-put-newmed-stake-acquisition-on-hold-uk-takes-another-step-towards-blocking-redbird-imis-telegraph-takeover-bid\/"},"modified":"2024-03-14T00:00:00","modified_gmt":"2024-03-14T00:00:00","slug":"adnoc-bp-put-newmed-stake-acquisition-on-hold-uk-takes-another-step-towards-blocking-redbird-imis-telegraph-takeover-bid","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/03\/14\/adnoc-bp-put-newmed-stake-acquisition-on-hold-uk-takes-another-step-towards-blocking-redbird-imis-telegraph-takeover-bid\/","title":{"rendered":"Adnoc, BP put NewMed stake acquisition on hold + UK takes another step towards blocking RedBird IMI\u2019s Telegraph takeover bid"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Not the best day for M&amp;A: <\/strong>We have news of two separate cross-border acquisitions from Emirati companies and investors that could fall through. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- Abu Dhabi National Oil Company (<\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.adnoc.ae\/\" style=\"\" rel=\"noopener\">Adnoc<\/a><\/strong><strong>) and UK energy giant BP have paused <\/strong><strong>negotiations on a USD 2 bn major stake purchase in Israel\u2019s NewMed Energy<\/strong> amid \u201cuncertainty created in the external environment,\u201d according to a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/3\/1289.pdf\" style=\"\" rel=\"noopener\">statement (pdf)<\/a> from NewMed.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s not completely off the table:<\/strong> Adnoc and BP \u201cagain expressed interest\u201d in the stake purchase, the Israeli offshore natural gas producer said in the statement, and there is potential for the companies to complete their bid once geopolitical tensions have cooled, <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-03-13\/bp-adnoc-deal-to-buy-stake-in-israel-s-newmed-is-suspended\" style=\"\" rel=\"noopener\">Bloomberg<\/a> cites a person familiar with the matter as saying. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background: <\/strong>Adnoc and BP agreed to jointly acquire 50% of the Israeli energy company for nearly USD 2 bn back in <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/deals\/adnoc-bp-bids-interest-israels-newmed-energy-2023-03-28\/\" style=\"\" rel=\"noopener\">March 2023<\/a>. As part of the acquisition, the companies planned to establish a new joint venture targeting gas development in the East Mediterranean, and other international areas of mutual interest.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Adnoc and BP have other plans in the meantime:<\/strong> Earlier in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/9fd335ef-2113-4b8c-9749-0ac62362768a\" style=\"\" rel=\"noopener\">February<\/a>, the companies agreed to form a joint venture to develop natural gas assets in Egypt. Adnoc will provide funds to support the venture\u2019s expansion, while BP contributes its stakes in three development concessions.The JV is scheduled to go live in 2H 2024.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/israels-newmed-says-bp-adnoc-buy-in-offer-hold-2024-03-13\/\" style=\"\" rel=\"noopener\">Reuters<\/a><\/strong><strong> and the <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/4767f282-c7a1-4b56-b0df-8d2e475f9f64\" style=\"\" rel=\"noopener\">Financial Times<\/a><\/strong><strong> also had the story.<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- <\/strong><strong>UK closer to blocking <\/strong><strong>RedBird IMI\u2019s GBP 600 mn bid<\/strong><strong> for the Telegraph: <\/strong>British Prime MinisterRishi Sunak has proposed amendments to legislation that would ban foreign state ownership of British newspapers and magazines, effectively blocking <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/59fd8189-c9c8-4b2e-be27-d38eee0f4ee7\" style=\"\" rel=\"noopener\">the<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/59fd8189-c9c8-4b2e-be27-d38eee0f4ee7\" style=\"\" rel=\"noopener\">acquisition<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/59fd8189-c9c8-4b2e-be27-d38eee0f4ee7\" style=\"\" rel=\"noopener\">of Telegraph Media Group<\/a> by Abu Dhabi-backed RedBird IMI, the <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/3b025f0f-f44a-4ddc-b2e5-e452a3dd6d86\" style=\"\" rel=\"noopener\">Financial Times<\/a> reports, citing plans outlined by UK Culture Minister Stephen Parkinson in the UK Parliament on Wednesday.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The details:<\/strong> Proposed amendments will see the UK\u2019s competition watchdog, the Competition and Markets Authority, block any transactions involving a foreign state's influence over a British media group, with state influence stipulated as foreign governments acting in a private capacity and investing their private wealth. The legislation will be voted on in the next reading of a digital markets bill passing through parliament.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>RedBird IMI\u2019s take: <\/strong>A spokesperson from RedBird IMI told the FT that it was \u201cextremely disappointed\u201d by the move and is currently evaluating \u201cnext steps,\u201d adding that the acquisition is a \u201cfully commercial undertaking.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- RedBird IMI <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/cc627f1a-b821-427a-842e-42996070d76b\/RedBird%20IMI%E2%80%99s%20Telegraph%20takeover%20bid%20could%20see%20more%20obstacles\" style=\"\" rel=\"noopener\">could be joined<\/a><\/strong><strong> by other companies<\/strong>, including Rupert Murdoch\u2019s News Corp and the owner of the Daily Mail, General Trust. This would dilute RedBird IMI\u2019s stake, potentially down to 25%, which could ease UK watchdogs\u2019 concerns over foreign state control of the media outlet, sources said earlier. RedBird IMI is majority owned by deputy prime minister Sheikh Mansour bin Zayed Al Nahyan.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background:<\/strong> The transaction has been contested in the UK, with 73 British MPs, including a cabinet minister and frontbenchers from both political parties <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/e911fc4f-36d5-45f5-b29d-395309f39dd0\" style=\"\" rel=\"noopener\">calling to halt<\/a> the takeover. UK Culture Secretary Lucy Frazer <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/be5be1e6-9906-4e16-91ed-d2485804ec87\" style=\"\" rel=\"noopener\">issued an order<\/a> to prevent any further changes to the ownership of The Telegraph until the UK government completes its investigation into the takeover in February, and will decide on the bid next week after receiving findings from the Competition and Markets Authority on the acquisition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The companies agreed to jointly acquire 50% of the Israeli energy company for nearly USD 2 bn last year<\/p>\n","protected":false},"author":1,"featured_media":90004,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2392],"tags":[57,872,143,7,300,425,60,40,1402],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-90003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-watch-2","tag-adnoc","tag-bp","tag-energy","tag-enterpriseam-uae","tag-israel","tag-israel-palestine-conflict","tag-ma-watch","tag-redbird-imi","tag-telegraph","wpautop","entry"],"acf":{"mongo_id":"6dfacfc8-c431-4a7e-938b-a330c9d30130","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/3\/1184.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Adnoc, 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