The Emirati fund Taqa wants to acquire 41% of Naturgy through a takeover bid on the entire capital of the energy company
The Emirati company Taqa is currently engaged in discussions with various shareholders of Spanish energy company Naturgy to potentially become a shareholder themselves. On Wednesday, the National Securities Market Commission (CNMV) confirmed these talks after days of speculation. The approval of the government is needed for this operation, and they will wait for more details before deciding how to react.
The rumors surrounding this potential arrangement led to the suspension of Naturgy’s trading on the stock market for an hour. After trading resumed, the company’s stock rose by 6.1% at the close of the session. The main shareholder of Naturgy, CriteriaCaixa, has confirmed that it has had preliminary contacts with a potential investment group.
According to the CNMV statement, Taqa has confirmed discussions with CriteriaCaixa regarding a possible cooperation agreement related to Naturgy. Taqa is also negotiating with the CVC and GIP funds, which hold significant shares in Naturgy, for a potential purchase of their shares.
If Taqa’s participation in Naturgy exceeds 30%, Spanish law would require Taqa to present a takeover bid for the entire capital of the company. Such a bid can only be authorized with the government’s approval, especially considering Naturgy’s status as a strategic company for Spain. Naturgy is a major supplier of natural gas in the country and a significant player in the national electricity market.
Reports suggest that the takeover bid would only proceed with the approval of the Spanish government and CriteriaCaixa. The aim would be to reorganize the company’s capital while safeguarding Spanish interests. The government has stated that it will wait for Taqa’s official proposal before taking action to protect Spain’s strategic interests in Naturgy.
Taqa has acknowledged that no agreements have been reached with CriteriaCaixa or the two funds at this point. The terms and likelihood of any potential operation are still uncertain. Taqa has also confirmed that there have been no approaches with Naturgy regarding their involvement.
Taqa is a prominent energy corporation that significantly surpasses Naturgy in terms of market value.
Taqa is a global energy company with a market value of €91,480 million, making it the fourteenth most valuable energy company in the world. It is nearly four times more valuable than Naturgy in terms of stock market price. In 2023, Taqa reported sales reaching €13.2 billion and profits of approximately €4.25 billion. The company is publicly listed in the United Arab Emirates and has investments in various assets across 10 different countries. It has energy plants and interests in countries such as Ghana, India, Morocco, Saudi Arabia, Oman, and the United States. Additionally, Taqa’s oil and gas division operates in Canada, Iraq, the Netherlands, and the United Kingdom.