Sonatrach uses pre-emption right to prevent Belgian company from entering Medgaz Pipeline

Algeria’s energy group Sonatrach has used pre-emption right for the first time and formed an alliance with a Spanish company to prevent a Belgian company to enter Medgaz Pipleine’s capital. That enabled the Algerian group to increase its capital to 43 percent in the pipeline in a 250 million euro-deal.

Sonatrach reinforced its shares in the pipeline between Beni Saf in Algeria and Almería in Spain. It has formed a strategic alliance with a Spanish firm for the first time to prevent a Belgian company from entering the pipeline capital. They bought 32 percent of the shares of two Spanish companies which quitted the Medgaz Pipeline’s capital.

The announcement was posted on the website of the Spanish National Commission of Stock Market. It says Sonatrach and the Spanish company bought the shares to prevent any new shareholder from entering the capital.

As usual, Sonatrach did not announce that to public opinion. Its communication cell denied the information. That raises questions about information transparency at Sonatrach as it is a public company while its partners publish all the information.