TAQA Eyes Major Stake in Spain’s Naturgy Valued at $22 Billion
Abu Dhabi National Energy Company (TAQA) has confirmed its interest in potentially acquiring a significant stake in Spain’s Naturgy Energy Group, valued at $22 billion.
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This confirmation came through a recent filing with the Abu Dhabi Securities Exchange, where TAQA acknowledged discussions with Criteria Caixa about potential cooperation, as well as talks with CVC and GIP regarding the possible acquisition of their shares in Naturgy.
Following these developments, Naturgy’s stock prices have seen a notable increase, jumping over 12% in the past five days to 22.84 euros. The share distribution among Naturgy’s stakeholders includes more than 20% ownership each by GIP and CVC, about 15% by Australian infrastructure fund IFM, and a 26.7% stake by Criteria Caixa, the investment holding company of Spanish bank La Caixa.
Financial Performance and Regulatory Considerations
In addition to the takeover talks, Naturgy’s financial performance has been strong, particularly in its renewable energy segment. In 2023, the company’s net profit rose to 1.99 billion euros ($2.16 billion) from 1.65 billion euros in 2022, with earnings before interest, tax, depreciation, and amortization in the renewables sector up by 41%.
The potential acquisition by TAQA would be the largest by a sovereign wealth fund, according to Global SWF, and would require approval from the Spanish government due to Naturgy’s vital role in the country’s energy system. Spanish regulations necessitate a mandatory tender offer for acquisitions over 30% of a publicly traded company, along with government approval for significant transactions.
Spanish Economy Minister Carlos Cuerpo noted that the government will evaluate the potential operation when and if it materializes but did not predict the outcome. TAQA has clarified that no agreements have been reached yet with Criteria Caixa, CVC, or GIP, and further announcements will be made in due course.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This partnership marks a significant step towards Abu Dhabi’s vision of becoming a global hub for advanced materials and technological innovation.
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The Abu Dhabi Department of Economic Development (ADDED) has entered into a Memorandum of Understanding (MOU) with Inovartic Investment, a prominent technology innovation company, to establish a facility in Abu Dhabi for the production of graphene and graphene-based products.
This strategic partnership represents a crucial advancement in the region’s and beyond’s capabilities for advanced material manufacturing, aligning with Abu Dhabi’s vision of becoming a global center for cutting-edge industries and technological innovation.
Graphene and graphene-based products are essential components in electronics and semiconductors, which are extensively utilized across various critical sectors, including healthcare, biotechnology, transportation, and environmental conservation.
H.E. Badr Al-Olama, Acting Director General of Economic Affairs at ADDED, said: “This partnership is a testament to Abu Dhabi’s commitment towards fostering a dynamic and diversified economy that supports new industries to ensure economic growth and prosperity. By working with Inovartic Investment, we are poised to make substantial advancements in the field of advanced material manufacturing, reinforcing our dedication to technological advancement and innovation in key sectors.”
Saif Aldarmaki, Chairman and Co-Founder of Inovartic Investment, expressed his enthusiasm, indicating that the agreement will act as a cornerstone for the future of advanced materials manufacturing.
“Our collaboration with the Abu Dhabi Department of Economic Development enhances our role as innovators and promotes sustainable growth and economic diversification for the Emirate. We look forward to the transformative impact this partnership will have on the industry and the region,” he added.
Anwar Hussein, Managing Partner and Co-Founder of Inovartic Investment said: “With this MOU, we are setting the stage for a new era of technological innovation and industrial excellence. Our partnership with the Abu Dhabi Department of Economic Development will enable us to push the boundaries of what is possible in advanced manufacturing, contributing to a more sustainable and prosperous world.”
By leveraging pioneering technologies that are integral to emerging sectors like Big Data, Artificial Intelligence, Augmented Reality and the Internet of Things, Abu Dhabi’s manufacturing sector is boosting industrial innovation, quality and efficiency. In turn, industrial excellence is set to propel the Emirate’s Falcon Economy vision, which aims to transform Abu Dhabi into an export-driven, resilient economy empowered by a highly skilled workforce to leverage advanced technologies and emerging disruptive economic trends.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
