Moeve and Galp negotiate the merger of their network of service stations and refineries to create a European champion

The energetic moeve (formerly Cepsa) and the Portuguese Galp sign a non-binding agreement to advance negotiations on the potential integration of their downstream -activities that include refining, distribution and marketing of fuels- with the aim of creating two leading platforms in energy and mobility in the Iberian Peninsula.

According to official statements released this Thursday, within the framework of these conversations the formation of two independent entities. One of them would focus on industrial activities – refining, trading, chemistry and energy based on green molecules, such as biofuels and hydrogen – aimed at business clients (IndustrialCo). The other would be focused on the retail business, integrating networks of service stations and mobility services, including charging for electric vehicles (RetailCo).

Moeve’s current shareholders, such as Mubadala and Carlylewould have control of the industrial platform, while Galp would maintain a stake of more than 20%. In the case of the mobility platform, shared control between both parties is foreseen. The proposal would integrate assets in Spain and Portugalincluding a joint network of around 3,500 service stationsand seeks to increase operational scale and investment capacity to serve a competitive and changing market.

The projected industrial integration aims to reinforce the strategic relevance of these refineries for both Spain and Portugal with the objective of toughening competition with Repsolleader of the Iberian market with more than 4,000 service stations. By increasing scale and investment capacity, the proposed platform would seek to strengthen the ability to allocate capital to the evolution of these facilities as hubs integrated multi-energy.

Both companies have stressed that, during the negotiation process, they will continue to operate independently and that any final agreement will be subject to board approval, regulatory authorizations and the signing of definitive agreements. In any case, in the current phase no final decisions have been made and no impact on ongoing operations, employees or existing business relationships of the entities involved.

“Integrated platforms provide the scale and investment capacity necessary to accelerate the energy transition in Europe and develop the next generation of European energy champions” highlights the corporate statement in which Paula Amorim, as president of Galp, highlights that “by adding the capabilities and experience of Galp and Moeve in operations downstreamwe have the opportunity to create great European players in Iberia”.