Abu Dhabi’s Taqa in talks to buy stake in Spanish utility Naturgy

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Taqa, an Abu Dhabi energy group, is in talks to buy a stake in Spanish utility Naturgy in a move that would mark another Gulf push into European industry.

The majority state-owned Gulf group is in discussions with private equity firm CVC and infrastructure investment group GIP, which each own Naturgy stakes of roughly 20 per cent, about “a possible acquisition of their shares”, Taqa said on Wednesday.

Its statement, which came shortly after the Spanish regulator suspended trading in Naturgy shares on the Madrid stock exchange, added: “If such an acquisition occurs, this would trigger an offer for all the shares of Naturgy.”

An Emirati bid for the entire company could be controversial in Spain. Naturgy, which has a market capitalisation of €21bn, is one of the country’s biggest energy groups.

Taqa said it was also in talks with Naturgy’s biggest shareholder, a holding company of Spain’s La Caixa foundation, over “potential co-operation in relation to Naturgy”.

Criteria Caixa, which owns stakes in various businesses for La Caixa foundation, one of Europe’s biggest charities, holds 26.7 per cent of Naturgy shares. GIP owns 20.6 per cent and a consortium formed by CVC Capital has 20.7 per cent.

Taqa said: “No agreement has been reached with CVC, GIP or Criteria Caixa. There can be no guarantee of any transaction nor any certainty as to the terms of any potential transaction.” Criteria Caixa and GIP declined to comment.

Saudi telecoms group STC made waves in Spain last year with a bid to buy 10 per cent of telecoms group Telefónica. In response, the Spanish government has ordered a state holding company to take a stake in the “strategic” company as a counterbalance.