That’s how Sonatrach became largest shareholder in “Medgaz” pipeline

The National Hydrocarbons Company Sonatrach has become the main shareholder in the “Medgaz” gas pipeline linking Algeria and Spain by 51 percent, after receiving the green light from the European Authority for Commercial Competition and Antitrust, which issued a decision that the deal is applicable and not inconsistent with the rules of the commercial competition while giving 10 days for objecting parties to submit their comments starting June 3.

In this context, the European Trade Competition Authority notified, by a decision dated June 3, 2020, of issue number 9851, of which “Echorouk” received a copy, including Sonatrach, Spanish Energy, Medgaz and Black Rock (the US investment fund in energy facilities, that the deal conforms to the rules of commercial competition).

It was stated in the document that after the initial examining of the deal related to the merger request submitted by the Algerian “Sonatrach” and the “Spanish” Energy (formerly Natural Gas Fenosa), the American Energy Investment Fund “Black Rock” and the facility “Medgas”, on May 25, 2020, without breaching its final decision, the Commission believes that the relevant transaction may enter into force in connection with the merger deals.

The European Trade Competition Authority called on those parties objecting to the deal to submit its possible observations thereon, and stipulated that the observations should be received no later than 10 days after the publication of the decision.

Given the contents of the document, by the 13th of June (last Saturday) and no objections from parties or companies opposing the deal, which is the deadline granted by the European Trade Competition Authority to object to the deal, Sonatrach has officially become the main contributor to the gas pipeline “Medgaz, the link between Algeria and Spain”. This is according to the strength of European competition law.

Under this acquisition, Sonatrach boosted its stakes in this important energy facility (Medgaz) by 8.04 percent, and their name jumped to 51 percent, making it the largest shareholder in the gas pipeline, while the share of the Spanish company (Natural Gas Venusa) moved to 49 percent.

It should be noted that the Algerian hydrocarbons company Sonatrach and its partner Naturgy acquired in this deal the share of the Spanish energy company “Cepsa”, which is estimated at 19 percent, which in turn is owned by a sovereign fund called “Mubadala” based in Abu Dhabi and owned by its government.