Galp, Moeve scrap talks to combine refining, fuel retail businesses

Galp and Moeve Abandon Refining and Fuel Retail Merger Talks in Europe

Breakdown of Merger Negotiations and Implications for European Refining

Background of the Proposed Merger

LISBON, Oct 26 (Reuters) - Portugal's Galp Energia said on Monday talks with Spain's private equity-backed Moeve to combine their refining, chemicals and fuel retail businesses had broken down, derailing a deal that would have created one of Europe's biggest refiners.

Statements from Company Leadership

Galp Chairwoman Paula Amorim said in a statement: "While the strategic rationale underpinning the proposed transaction remains compelling, the parties were unable to achieve the necessary commercial alignment to support an enduring and value-accretive partnership."

Moeve CEO Maarten Wetselaar said in a statement the company was "fully focused" on its strategic transformation towards low-carbon businesses after the talks collapsed. Neither gave any specific reasons for the talks failing.

Details of the Abandoned Deal

Galp and Moeve – formerly known as Cepsa and owned by Abu Dhabi's Mubadala and US investment firm Carlyle – had announced in January a non-binding agreement to explore combining their downstream assets through two joint ventures.

Industrial Venture Structure

A separate industrial venture would have combined Galp's Sines refinery with Moeve's Huelva and Algeciras refineries, creating a refining platform with crude processing capacity of about 700,000 barrels per day. Moeve was expected to hold a controlling stake, while Galp would own more than 20%.

In July Galp said discussions with Moeve's shareholders were progressing constructively and that the parties remained committed to reaching an agreement in the second half of 2026.

Retail Business Plans

Under the proposed structure, the companies had planned to create a retail business operating around 3,500 service stations, primarily in Spain and Portugal, with ownership split equally between the two groups.

Strategic Rationale and Future Outlook

The companies had argued that greater scale would strengthen their position in refining, chemicals, fuel distribution and low-carbon energy projects while helping finance the energy transition.

The collapse of the talks leaves Galp's refining, chemicals and fuel retail businesses under its sole ownership, while the group continues to focus on its core growth areas, including oil production in Brazil and renewable energy.

Galp's Position Going Forward

Amorim said Galp remains "exceptionally well positioned, with one of the most attractive upstream growth profiles in the sector, strong industrial and commercial businesses, and a

diversified portfolio".

(Reporting by Sergio Goncalves and Pietro Lombardi; Editing by David Holmes)