Moeve, Galp end negotiations on potential downstream combination
Moeve announced Oct. 26 that, further to the announcement of Jan. 8 on a nonbinding agreement between Moeve and Galp, the parties have decided to end discussions regarding the potential combination of their downstream businesses in the Iberian Peninsula to create two independent platforms.
Moeve and Galp did not reach final terms that met their respective strategic and financial criteria to support an enduring and value-accretive partnership.
Moeve is a major Iberian energy company, with a strong refining base and the second-largest service-station network in Spain that provides a solid platform for growth in green molecules and sustainable mobility.
The company remains fully focused on executing its “Positive Motion” strategy to become a European leader in these areas by 2030.
In recent months, it commenced construction on Europe’s largest green-hydrogen project for industrial energy production, with an initial capacity of 300 megawatts (MW) and an investment exceeding 1-billion euros (USD$1.19 billion).
It is also nearing completion of the largest second-generation biofuels complex in Southern Europe, representing a 1.2-billion-euro (USD$1.34 billion) investment scheduled to begin operations in 2027.
Moeve has already divested more than 70 percent of its oil exploration and production assets and allocates two-thirds of its capital expenditure to industrial energy-transition projects.
In addition, Moeve recently unveiled its new operating model in order to accelerate the implementation of its Positive Motion strategy and to build a more agile and efficient organization, which, the company said, “represents the next step in the company’s transformation, characterized by top-class industrial execution and a customer-centric approach to markets.”
Maarten Wetselaar, CEO of Moeve, said, “Positive Motion has always been a standalone strategy. The potential downstream combination with Galp represented an opportunity to accelerate value creation, but it was never a condition for its delivery. Following extensive discussions, it was not possible to reach a commercial agreement with Galp. We remain fully focused on executing our transformation with financial discipline and delivering sustainable long-term value.”
