Finance
Repsol weighs merger of upstream unit with APA, Bloomberg News reports
Published by Global Banking & Finance Review®
Posted on November 13, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 13, 2025
1 min readLast updated: January 21, 2026
Repsol is considering merging its upstream unit with APA, with plans for a liquidity event by 2026. APA shares increased following the news.
(Reuters) -Spain's biggest refinery operator Repsol SA is considering a reverse merger of its upstream unit with potential partners, including U.S. energy producer APA, Bloomberg News reported on Thursday, citing people with knowledge of the matter.
APA shares were up 7.1% at $25.59.
Repsol in 2022 entered into a deal to sell a 25% stake in the upstream division to private equity firm EIG Global Energy Partners, valuing the whole business around that time at $19 billion including debt.
The upstream unit has net hydrocarbon production of about 571,000 barrels of oil equivalent per day, according to the company website.
The report comes weeks after Repsol CEO Josu Jon Imaz said the upstream unit was being prepared for a liquidity event in 2026, which could mean an IPO or a reverse merger with a company listed in the U.S.
The Spanish company has held exploratory discussions with potential merger partners for the business, including APA, the Bloomberg report said.
An APA spokesperson declined Reuters request for comment, while Repsol did not immediately respond.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)
A merger is a business strategy where two companies combine to form a single entity, often to enhance competitiveness, achieve synergies, or expand market reach.
An IPO, or Initial Public Offering, is the process by which a private company offers shares to the public for the first time, allowing it to raise capital from public investors.
Equity represents ownership in a company, typically in the form of stocks. It signifies the value of shares issued by a company and can provide dividends to shareholders.
A liquidity event is a significant occurrence that allows investors to cash out their investments, typically through a merger, acquisition, or IPO, providing them with cash or stock.
A stake in a company refers to the ownership interest that an individual or entity holds in that company, often represented by shares or equity.
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