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Abu Dhabi energy group Taqa is in talks that could lead to a multibillion euro takeover bid for Spanish utility Naturgy and extend a Gulf push into European industry.
The majority state-owned utilities group is in discussions with private equity firm CVC and infrastructure investment group GIP, which each own Naturgy stakes of roughly 20 per cent, about “a possible acquisition of their shares”, Taqa said on Wednesday.
It added that “if such an acquisition occurs, this would trigger an offer for all the shares of Naturgy”, a utility and major gas supplier with a market capitalisation of €21bn.
An Emirati bid for the entire company could be controversial in Spain, where Naturgy — once known as Gas Natural — is one of the country’s biggest energy groups alongside Repsol and Iberdrola.
Jordi Hereu, Spain’s industry minister, declined to comment on the talks over Naturgy but said it was important to “strengthen groups that are strategic” to Spain.
Taqa’s statement was made shortly after the Spanish regulator suspended trading in Naturgy shares on the Madrid stock exchange.
The Abu Dhabi group said it was also in talks with Naturgy’s biggest shareholder, a holding company of Spain’s La Caixa foundation, over “potential co-operation in relation to Naturgy”.
Criteria Caixa, which owns stakes in various businesses for La Caixa foundation, one of Europe’s biggest charities, holds 26.7 per cent of Naturgy shares. GIP owns 20.6 per cent and a consortium formed by CVC Capital has 20.7 per cent.
Private equity funds have been hit by high interest rates and choppy markets and are facing demands from their investors to return capital by selling assets.
For Taqa, acquisitions are one way it could reach its ambitious growth targets. In November, it said it was aiming to have 150GW of gross power generation by 2030, trebling its previous target. It currently has 24GW of gross power generation.
The company said on Wednesday: “No agreement has been reached with CVC, GIP or Criteria Caixa. There can be no guarantee of any transaction nor any certainty as to the terms of any potential transaction.” Criteria Caixa, CVC and GIP declined to comment.
Saudi telecoms group STC made waves in Spain last year with a bid to buy 10 per cent of telecoms group Telefónica. In response, the Spanish government ordered a state holding company to take a stake in the “strategic” company as a counterbalance.
Additional reporting by Ivan Levingston in London
