Big Controversy In Spain Over UAE’s Attempt To Buy “Naturgy” Energy Company

The attempt of the Emirati government, through the company “Taqa”, to control the Spanish company “Naturgy” has become the talk of economic, political and media circles in Spain, in view of the partnership of “Naturgy” with its Algerian counterpart, Sonatrach, which supplies the Spaniards with more than a third of their gas needs.
The issue has been interacting from day to day for about a week since the announcement of the efforts of the Emirati authorities to acquire the Spanish company. An unusual figure, an advisor to the “National (Spanish) Securities Commission”, took the initiative with a post on the social networking site “LinkedIn”. It clarifies the conditions that would allow the government to enter into the capital of the company or place a limit on “taqa” shares in “Naturgy”, in a way that makes it ineligible for decision-making.
The Spanish company involved in the Emirati takeover is considered strategic in the eyes of the Madrid government, especially after the outbreak of the Russian-Ukrainian war, given its role in the energy sector in that country, as it imports gas from Algeria and owns 49 percent of the shares in the Medgaz pipeline company, which directly connects Algeria to Spanish territory. This is why the Spanish Securities Market Commission or any of its directors or advisors rarely speak about such acquisitions, according to an article on the website “El Periódico de la Energía”.
In this regard, the Spanish Securities Market Commission requested information on the negotiations between some shareholders of the company “Naturgy” and for this reason decided to suspend the company’s trading in the early morning.
Within a few hours, the Emirati company Taqa announced its intentions, claiming that it was negotiating with CVC and GIP for a 41 percent stake in Naturgy, and that at the same time it was negotiating a shareholders’ agreement with Criteria Caixa.
As a result of this information, “El Periódico de la Energía” pointed out the possibility that the state, through the government, would become part of the process and interfere in the ownership of the shares of the Spanish company, based on the fact that “Naturgy” is considered a strategic company of national interest in light of the unresolved energy crisis. This is unprecedented in Europe regarding the security of gas supplies, after the war crisis in Ukraine.
The aforementioned source stopped at a post on the social networking site “LinkedIn”, written by one of the advisors to the supervisor of the securities market, Mariano Bacigalupo, who talked about how the government could act if it wanted to intervene in the event that the UAE “Taqa” tried to acquire “Naturgy”. “.
Basijalobo, who is the husband of the Spanish Vice President of the Government and Minister of Environmental Transformation, Teresa Ribera, explained in his publication the four cases in which the government could intervene in the deal under discussion between the Spanish company and its Emirati counterpart. The first is to assign some basic activities to the public sector (public services in the strict sense). Their management can be outsourced to the franchisor).
As for the second current situation, it is represented by the participation of public authorities in a competitive market on the basis of economic considerations made by a third party, and in the third case, a significant participation, although not a majority, in the capital of some strategic companies, as in the case of “Naturgy”, and the state can also intervene in some sensitive sectors for the sake of regulation, in order to avoid disruption of competition in strategic sectors.
The stock market consultant focuses on the third and fourth cases, i.e. the state, through the government, can take a large stake in the company’s capital. He also points out that the government itself may have to intervene, since Naturegy is a company that owns regulated energy assets and distribution networks for both electricity and gas. This could be the perfect excuse to finally intervene in this company, according to the same source.
If TAQA is not aware of this possibility, says El Periódico de la Energía, citing the aforementioned advisor, it is clear that the government has all the legal tools to intervene and be part of the future energy company, knowing that this type of action could be carried out by the Director of the Spanish Securities Market Commission.