Spanish holding company Criteria announced that it had not reached an agreement with Abu Dhabi’s TAQA regarding a potential joint bid to acquire the Spanish gas company Naturgy.
According to sources familiar with the negotiations, TAQA has reportedly decided to withdraw from the joint bid with Criteria, which holds a 26.7 per cent stake in Naturgy, as reported earlier by El Mundo newspaper.
Criteria stated in a filing to the market regulator CNMV that the discussions between CriteriaCaixa and TAQA regarding a potential cooperation agreement for Naturgy have been terminated without reaching any agreement. They also mentioned that they are exploring alternative options to support Naturgy’s transformation plan and reiterated their commitment as long-term investors in the company’s industrial project.
TAQA confirmed in a regulatory filing on Tuesday that discussions on a potential cooperation agreement with Criteria Caixa and the acquisition of Naturgy shares have ended, and there will be no transaction.
Naturgy declined to provide any comment on the matter.
TAQA had been in discussions with Naturgy’s three largest shareholders—Criteria, and private equity funds CVC and GIP, each owning over 20 per cent—with the aim of a possible takeover bid, which was announced in April. However, TAQA clarified that there was no guarantee of a deal and the terms if it were to happen. They also stated that they had not directly approached Naturgy.
CVC and GIP chose not to comment, while the Australian fund IFM, holding a 15 per cent stake in Naturgy, also declined to provide any comment.
Founded in 2005, TAQA, a power and water utility company, was planning to acquire Spain’s largest gas firm along with contracts with Algeria, and a long-term contract to import around 3 billion cubic metres of Russian liquefied natural gas annually.
The potential acquisition, with Naturgy’s market value at EUR24.3M ($26.14M) on Monday, would have been one of the largest takeovers by a sovereign wealth fund.
