Spain is open to the UAE’s TAQA bid to acquire Naturgy

On Friday, Spain expressed openness to a possible takeover offer from Abu Dhabi National Energy Company (TAQA) for Naturgy, and said that the government will defend its strategic interests, but that does not mean obstructing the takeover agreement.

According to Reuters, TAQA confirmed on Wednesday that it is in talks with the three largest shareholders in Naturgy with the aim of reaching a potential acquisition agreement for the largest natural gas company in Spain.

Given the strategic role Naturgy plays in Spain’s energy system, the government will have a say in any takeover.

Spanish Energy Minister Teresa Ribera said in response to inquiries about the potential deal at a press conference, “I spoke about the need to be vigilant and ensure energy security in defense of Spain’s strategic interests. This does not mean objecting to any company or investor.”

Ribera added that Spain had already shown that it had the mechanisms to protect its interests when it accepted the offer submitted by the Australian IFM Fund in 2021 to acquire a stake in Naturegy. The government then imposed conditions to protect jobs, investment, and gas and electricity supplies.

It added, “Monitoring mechanisms or vigilance mechanisms were activated regarding investments from third countries and some conditions were introduced, and I believe they worked correctly.”

Spain faced a similar decision after the Saudi Telecom Company acquired a 9.9% stake in the Spanish telecommunications company “Telefonica”. The government said in December that it would buy a 10% stake in Telefonica in an attempt to achieve balance.

The Minister of Energy continued, saying that the government “will closely monitor the development of these talks (regarding Naturegy), and will monitor, where appropriate, the conditions under which an investor from outside the European Union can acquire part of the company’s assets.”

Naturgy has a stake in the main gas pipeline between Spain and Algeria, in addition to a long-term contract to import about three billion cubic meters of Russian liquefied natural gas annually.