Abu Dhabi-based TAQA has initiated discussions with the three largest shareholders of Spanish energy company Naturgy NTGY.MC, signaling its interest in a potential full takeover bid for the firm. Criteria, the primary shareholder in Caixabank CABK.MC, possesses a 26.7% stake in Naturgy, which currently holds a market value of 22 billion euros. Private equity firms CVC and GIP each own an additional 20% stake, amounting to a combined value of nearly 9 billion euros. TAQA has confirmed its engagement in talks with these shareholders regarding the potential acquisition of their stakes.
Under Spanish regulations, a mandatory tender offer is required when a buyer seeks to acquire more than 30% of a publicly traded company, potentially leading to one of the largest European acquisitions by a UAE-based entity. Spain’s significance as a regional hub for liquefied natural gas (LNG) has grown due to the European Union’s shift away from Russian pipeline gas supplies following the Ukraine conflict.
If successful, TAQA’s acquisition of Naturgy would position the power and water utility, established in 2005, as the owner of Spain’s largest gas company. Naturgy holds significant contracts with Algeria and a long-term agreement to import approximately 3 billion cubic meters (bcm) of Russian LNG annually.
Additionally, TAQA has expressed interest in a potential partnership agreement with Criteria, although no definitive agreements have been reached with any of the parties involved. The company emphasized that there is no assurance of a deal materializing, and the terms of any potential agreement remain undetermined. Notably, TAQA clarified that it has not directly approached Naturgy and highlighted that Spanish government approval would be necessary for any prospective deal.
While the Spanish Ministry of Economy declined to comment, a government source acknowledged TAQA’s interest as a reflection of Spain’s appeal for international investment. Notably, Naturgy, CVC, GIP, and Australian fund IFM, which holds a 15% stake in Naturgy, all declined to provide comments. Criteria reiterated its previous statement from Tuesday, confirming discussions with an investor group.
TAQA, which operates in approximately 10 countries in addition to the UAE, is majority-owned by a unit of Abu Dhabi’s sovereign wealth fund ADQ, with gas constituting over half of the company’s production mix last year. The company has also expanded its renewable energy business, achieving an installed capacity of around 6.5 GW by the end of the previous year.
The strengthening of relations between Madrid and Abu Dhabi two years ago, through the establishment of a strategic partnership, underscores the significance of TAQA’s potential acquisition of Naturgy within the context of international economic cooperation.