Moeve and Galp finalize the integration of their service station businesses in Spain and Portugal

BarcelonaThe Spanish hydrocarbon company Moeve (formerly Cepsa) and the Portuguese company Galp have reached a non-binding agreement to advance negotiations on the potential integration of their businesses. downstream —refining, distribution, and sales at service stations—, with the aim of jointly gaining scale in an increasingly competitive sector and thus creating a European giant on the Iberian Peninsula, according to a statement released by Moeve. Specifically, the negotiations will assess the possible creation of two complementary European energy platforms: an industrial one, called IndustrialCo, which will focus on the refining and chemical businesses. trading, green molecules and low-carbon fuels, geared towards serving corporate clients; and another mobility division focused on the sale of fuels (including electric vehicle charging) and convenience services aimed at retail and mobility customers, while driving the development of next-generation mobility solutions, called RetailCo.

Moeve's current shareholders, the investment funds Mubadala and Carlyle, will control the industrial platform, while Galp will retain a stake exceeding 20%. Meanwhile, current Moeve and Galp shareholders will have shared control of RetailCo. The proposed combination excludes other Galp businesses, such as...upstream (exploration and production), renewables or supply and trading of oil, gas, and energy.

In the specific case of the IndustrialCo platform, it would have a combined crude oil processing capacity of approximately 700,000 barrels of oil per day across three industrial complexes. As for RetailCo, the intention is to combine the service station networks of both companies to create a truly pan-Iberian network, with approximately 3,500 locations in Spain and Portugal, with estimated aggregate sales of petroleum products to direct customers exceeding 6.5 million tons in 2025. ~BK_S

Furthermore, as independent companies, both businesses are expected to be self-financing while pursuing growth opportunities and solutions for the energy transition, and a potential agreement regarding the ongoing negotiations is expected by mid-2026. Until the transaction closes, Moeve and Galp will continue to operate as independent companies, with full continuity of facilities and all activities.

In any case, any potential transaction between the parties is subject to negotiation and the closing of definitive and binding agreements, the necessary corporate approvals, and obtaining the relevant regulatory authorizations.