Moeve, Galp negotiating to combine downstream activities

Photo: Moeve

Moeve announced Jan. 8 that it has reached a nonbinding agreement with Galp to advance detailed discussions on the potential combination of their downstream portfolios with the aim of creating two leading energy companies in the Iberian Peninsula.

The discussions will assess the potential creation of two European energy platforms: an industrial platform focused on refining, chemicals, trading, green molecules and low-carbon fuels, serving business-to-business (B2B) customers (IndustrialCo); and a mobility platform focused on fuel retail (including electric-vehicle charging) and convenience, serving retail and mobility customers and supporting the development of next-generation mobility solutions (RetailCo). 

Moeve’s current shareholders, Mubadala and Carlyle, will hold a controlling interest in IndustrialCo, with Galp holding above 20 percent.

RetailCo will be co-controlled by Moeve’s current shareholders and Galp.

The proposed combination excludes other Galp businesses, such as upstream, renewables, supply and trading of oil, gas and power.

The proposed combination brings together complementary assets, capabilities and teams across Spain and Portugal, with the objective of enhancing scale and investment capacity, while supporting the energy transition and strengthening the resilience, reliability and competitiveness of the Iberian energy system. 

In particular, IndustrialCo is designed to play a central role in attracting long-term industrial investment to the region and accelerating the transformation of existing refining and industrial assets into integrated multi-energy hubs.

These assets will support the development and deployment of low-carbon fuels and solutions, contributing to the reindustrialization of the Iberian Peninsula, reinforcing energy security and supporting decarbonization objectives in hard-to-abate sectors.

The proposed industrial combination brings together highly competitive refining assets that benefit from coastal access and integrated logistics, positioning the platform well for the development of green hydrogen and other green and low-carbon molecules.

The proposed combination is intended to reinforce the strategic relevance of these refineries for both Spain and Portugal, supporting their continued operation and long-term transformation.

By enhancing scale and investment capacity, the proposed industrial combination strengthens the ability to deploy significant capital into the evolution of these sites as integrated multi-energy hubs, reflecting the future of refining in the Iberian Peninsula.

The intention is for RetailCo to combine the service-station networks of both companies to create a truly pan-Iberian network, with approximately 3,500 sites, primarily located across Spain and Portugal.

The enlarged scale is expected to allow the new company to offer a stronger customer-service proposition, further value to clients and greater convenience, including improved food-to-go and mobility offerings.

The combination will also accelerate investment in electric-vehicle (EV) charging and next-generation mobility services, supporting the transition to cleaner transport across Iberia.

During the negotiation process, Moeve and Galp will continue to operate as independent companies with full continuity of operations, supply and customer service across all activities and geographies.

Any potential transaction remains subject to the negotiation and execution of final and binding agreements, the necessary corporate approvals and the applicable regulatory authorizations.

At this stage, no final decisions have been taken and there are no impacts on the companies’ ongoing operations, employees or existing commercial relationships. 

Moeve and Galp have committed to keeping the market, employees and other relevant stakeholders informed in accordance with their respective legal and disclosure obligations. 

“This potential combination represents a unique opportunity to strengthen the role of the Iberian Peninsula in the energy transition by creating platforms with the scale, resilience and investment capacity required to deliver change at pace,” said Maarten Wetselaar, CEO of Moeve. “By bringing together industrial excellence, downstream reach and a strong pipeline of low-carbon projects, we aim to attract long-term capital and accelerate the deployment of solutions that support competitiveness, decarbonization and economic growth. At Moeve, we believe that disciplined investment, technological innovation and long-term partnerships are essential to ensure that the energy transition translates into thriving businesses for the region.”

Paula Amorim, chair of Galp, added, “I am extremely pleased that we have reached this preliminary agreement and launched such a major strategic discussion. Galp’s growth vision has always been based on partnerships with highly credible operators that have consistently proven to be value accretive. By combining Galp’s and Moeve’s complementary capabilities and expertise on downstream operations, we have the opportunity to create major European players in Iberia, each benefiting from greater focus, tailored capital allocation and key flexibility to drive sustainable growth and value. It is my firm belief that this opportunity reinforces our ability to support and promote a just energy transition, capable of addressing evolving market needs and ensuring safe and responsible energy supply to Iberia.”

The proposed industrial platform is expected to have an aggregated crude-processing capacity close to 700,000 barrels per day across three industrial sites.

A potential agreement is expected by mid-2026.