The Abu Dhabi-based energy conglomerate Taqa is exploring the possibility of making a multibillion-euro takeover bid for Spanish utility Naturgy, signaling a Gulf interest in European industry.
Taqa, majority state-owned, is currently in discussions with private equity firm CVC and infrastructure investment group GIP, both of which own approximately 20% stakes in Naturgy, regarding a potential acquisition of their shares, the company announced on Wednesday.
Should this acquisition materialize, Taqa stated, it would trigger an offer for all outstanding shares of Naturgy, a major utility and gas supplier with a market capitalization of €21bn.
A complete takeover bid by an Emirati company might provoke controversy in Spain, where Naturgy, formerly known as Gas Natural, is one of the country’s largest energy companies, alongside Repsol and Iberdrola.
Spain’s Minister of Industry, Jordi Hereu, declined to comment on the Naturgy talks but emphasized the importance of strengthening companies that are strategically significant to Spain.
Taqa’s announcement came shortly after the Spanish regulator suspended trading in Naturgy shares on the Madrid stock exchange.
Additionally, Taqa revealed ongoing discussions with Naturgy’s largest shareholder, a holding company of Spain’s La Caixa foundation, regarding potential collaboration concerning Naturgy.
Criteria Caixa, which manages stakes in various businesses for La Caixa foundation, one of Europe’s largest charities, holds 26.7% of Naturgy shares. GIP owns 20.6%, and a consortium led by CVC Capital holds 20.7%.
Private equity funds have been affected by high interest rates and volatile markets, leading investors to pressure them to divest assets.
For Taqa, acquisitions represent a means of achieving its ambitious growth targets. In November, the company announced its aim to reach 150GW of gross power generation by 2030, tripling its previous target. Currently, it has 24GW of gross power generation capacity.
Taqa emphasized, “No agreement has been reached with CVC, GIP, or Criteria Caixa. There can be no guarantee of any transaction, nor any certainty about the terms of any potential transaction.” Criteria Caixa, CVC, and GIP declined to comment.
Last year, the Saudi telecoms group STC attracted attention in Spain with a bid to acquire a 10% stake in the telecoms group Telefónica. In response, the Spanish government directed a state holding company to take a stake in the “strategic” company as a counterbalance.
About Taqa
Their roots lay in Abu Dhabi, with operational reach extending beyond the UAE. They stand as a top 10 integrated utilities champion in the EMEA region, boasting power, water, oil, and gas operations across 11 countries globally.
TAQA’s journey commenced in 2005, yet its origins trace back to 1998, coinciding with the privatization of Abu Dhabi’s power and water sector. This historical milestone emphasized the significance of water security and electricity provision to UAE communities. Subsequently, TAQA emerged as a publicly listed entity on the Abu Dhabi Securities Exchange (ADX) in 2005. Over the years, they have diversified their portfolio, expanding operations not only in the UAE but also in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Kingdom, and the United States.
They take pride in their role as a company that delivers energy and water solutions to communities worldwide.
About Naturgy
Over the years, they have established themselves as one of the main players in the energy evolution. One of the first to introduce town gas and, subsequently, natural gas in Spain, their innovative and pioneering spirit lives on almost two centuries later as they introduce renewable gas as a fundamental energy carrier in the energy transition and promote wind and solar renewable energies.
They have implemented technological advances that have improved the lives of millions of people, increased the competitiveness of thousands of companies, and fostered the well-being and economic growth of many different societies all over the world.
Naturgy operates in more than 20 countries, has close to 16 million customers and employing around 7,000 people.