Since mid-April, Taqa had been engaged in takeover talks for the 41% stake in Naturgy held by investment funds CVC and GIP. At the same time, the Emirati company was negotiating a cooperation agreement with Criteria Caixa, the investment arm of Catalan bank La Caixa and Naturgy’s largest shareholder with a 26.7% stake, with a view to a joint takeover. Criteria Caixa finally announced that it would not participate in the acquisition of Naturgy.
Disagreements on valuation?
No official reason was given for the sudden abandonment of discussions. However, sources close to the matter point to differences of opinion over the valuation of Naturgy and the overall cost of the operation. The financial demands of the CVC and GIP funds, eager to sell their stakes, could have scuppered the deal despite the progress made.
A setback for Naturgy’s record profits
This abrupt end marks a setback for the Spanish group, which had been forecasting solid results for 2023, with net profit up 20% to almost 2 billion euros, buoyed by the global economic recovery. Naturgy thus remained coveted despite a turbulent energy context.
Naturgy’s trajectory once again uncertain
Naturgy shares suffered a severe correction on Tuesday, erasing most of the gains made since the formalization of discussions with Taqa. Analysts are now questioning the energy company’s potential strategic options and the position of the various shareholders.
While the well-established Criteria Caixa seems to be opting for the status quo, the Australian pension fund IFM (15%) and above all the CVC and GIP funds will probably be looking for new ways out. Their intention remains to sell their respective stakes acquired during a debt reduction operation in 2018.
Prospects for Naturgy still unclear
Taqa’s decision to give up raises questions about the company’s capital future in the medium term. We can’t rule out mergers with other energy players, or even a new round of financing, as part of an industry consolidation strategy.
Despite this turbulence, Naturgy can rely on solid fundamentals, with diversified assets and a strategic position in Spain and Latin America. But the equation of governance and shareholder control will have to be resolved quickly to unlock new growth prospects.
Long tail: Naturgy seeks a new lease of life
Meta-description: UAE giant Taqa abruptly abandons plans to acquire Naturgy, reviving uncertainty about the Spanish energy company’s future trajectory.
Countries listed: Spain, United Arab Emirates, Australia
Listed companies: Taqa, Naturgy, Criteria Caixa, CVC, GIP, IFM
Tags: Naturgy, Taqa, Takeover, Buyout, Investment funds, Failed negotiations, Stock market, Share price, Company valuation, Shareholders
Themes: Business investment
Photo ideas :
A disappointed trader, hand on forehead, in front of screens showing the plunge in Naturgy shares.
A photo of the Naturgy tower in Madrid, with the logo in close-up.
An empty meeting room, illustrating the failure of the takeover negotiations.
