Galp and Moeve negotiate merger of Iberian downstream assets

Galp Energia and Moeve (controlled by Mubadala and Carlyle) are negotiating a merger of their downstream businesses in the Iberian Peninsula. The deal involves creating two new entities: RetailCo, focused on fuel retail and electric mobility, and IndustrialCo, which will consolidate refining, petrochemical, and low-carbon fuel assets.

Under the proposed structure, Galp would hold just over 20% of the new industrial entity, while Moeve would hold approximately 80%. This would integrate the Sines refinery in Portugal with Moeve’s Huelva and Algeciras refineries in Spain.

Analysts and legal experts have noted that the deal could represent a strategic loss for Angola’s state oil company, Sonangol. As a significant indirect shareholder in Galp, Sonangol’s influence over European energy assets like the Sines refinery may diminish as control shifts toward Abu Dhabi-based Mubadala and US-based Carlyle. While the merger is framed as an efficiency-driven move to accelerate the energy transition, critics suggest it erodes Angola’s economic influence in European energy decision-making centers.