Taqa in talks to buy stake in Spanish utility Naturgy

Abu Dhabi National Energy Company (Taqa) is reportedly in talks with Spanish private equity group CriteriaCaixa to acquire a stake in Naturgy Energy Group.

Taqa chairman Mohamed Hassan Alsuwaidi recently met with an unnamed Criteria executive to discuss a potential deal, Bloomberg reported.

Criteria, which holds 26.7 percent of €24 billion ($26 billion) Naturgy, has set two conditions for any possible deal: it will not sell a majority stake and there must be no diplomatic conflicts with Algeria.

Algerian-state owned Sonatrach holds a 4.1 percent stake in Naturgy.  

Last June Criteria failed to reach a deal with Taqa over a potential takeover bid for Naturgy.

CVC Capital Partners and BlackRock Inc.’s Global Infrastructure Partners each own nearly 21 percent of the Spanish utility. The companies have previously expressed interest in selling their stakes, the report said.

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However, Australia’s IFM Global Infrastructure, which holds 17 percent of Naturgy, intends to remain a long-term investor.

Naturgy owns two pipelines that transport fuel from Algeria to Spain.

Last month Taqa said capital expenditure rose by nearly two-thirds to more than AED9 billion in 2024 due to the construction of new projects in the UAE.

Net income reached AED7 billion in 2024, up 1.5 percent year on year, excluding one-off items of AED11 billion related to the acquisition of a 5 percent stake in Adnoc Gas and an AED1 billion deferred tax charge due to the introduction of UAE corporate tax.