Shares of Naturgy plunged nearly 14% in Tuesday’s trading session after CriteriaCaixa announced the termination of its negotiations with the Emirati company Taqa, without reaching any agreement. The two companies were finalizing plans for a joint takeover bid for the Spanish energy firm.
Naturgy’s stock maintained its Monday closing price of 24.86 euros per share until 9:35 AM, reflecting a 0.65% increase. However, following an auction, the energy company’s shares fell by 11.67% by 9:45 AM, trading at 21.96 euros per share. By 11:00 AM, the stock had further declined by 12.15%, reaching 21.81 euros per share.
By 1:30 PM, the drop extended to 14.08%, with shares trading at 21.36 euros each. This marks the most significant decline in Naturgy’s stock since March 2020, when it plummeted by 16.69%.
After the market closed on Monday, Criteria Caixa informed the National Securities Market Commission (CNMC) that it had ended negotiations with Taqa for launching a takeover bid for Naturgy. In recent weeks, both companies were working on creating a vehicle to facilitate the purchase of 41.3% of the energy company’s capital held by the funds CVC and GIP, which were recently acquired by BlackRock.
The plan was for La Caixa’s investment arm, holding 26.7% of the capital, to become the main investor while allowing the Emirati company to join as a shareholder. Despite receiving approval from both the government and the CNMC, the deal failed to materialize, complicating the potential exit of the mentioned investment funds.
Nevertheless, CriteriaCaixa stated that it would continue “exploring alternatives” to secure Naturgy’s industrial project and accelerate its growth. The company seeks options to stabilize its shareholder base and maintain its position as a key Spanish partner in the company.
Furthermore, CriteriaCaixa reaffirmed its commitment as a “long-term investor” in the energy company and reiterated its “intent to defend the interests […] to keep the company listed in Spain, ensure a coherent industrial plan with the energy transition, and maintain energy supply security” for the country.
Governance Distribution: A Point of Conflict
Sources close to the matter told Europa Press that the negotiations fell apart due to the “impossibility” of reaching an agreement on the governance distribution within Naturgy, rather than disagreements over the final price. The price had been negotiated to around 27 euros per share.
In fact, despite some funds expressing dissatisfaction with the proposed price, market sources indicated that these concerns “were never seriously doubted.”
