Galp and Moeve end negotiations for Iberian energy merger

Galp and the Spanish energy company Moeve have officially terminated negotiations to merge their refining and fuel distribution businesses. The proposed deal, which had been under discussion since January, aimed to create two major Iberian platforms: an industrial entity (IndustrialCo) and a retail network (RetailCo).

The collapse of the deal follows disagreements over asset valuations and operational terms. Industry sources suggest that geopolitical volatility and market uncertainty, particularly regarding energy prices and supply chains, complicated the negotiations. Additionally, the deal faced scrutiny in Portugal due to concerns over national energy security, specifically regarding the potential loss of control over the Sines refinery.

In a joint statement, the companies noted they could not reach definitive terms that met their respective strategic and financial criteria for a long-term partnership. Galp stated that the end of negotiations will not impact its current operations or its commitment to its downstream portfolio and energy transition projects in Sines.