The energy sector has been abuzz with news of a potential takeover bid by It falls for 100% control of Naturgy. The move comes after the Emirates group confirmed its intention to invest in the national energy landscape, with It falls being one of several companies that will be affected by this investment.
It falls is a publicly traded company on the Abu Dhabi stock exchange, with a market capitalization of approximately 86,000 million euros. This makes it three times larger than Naturgy and 15,000 million euros above Iberdrola. It falls is a subsidiary of Abu Dhabi, which controls it through sovereign funds and large asset managers such as ADIA, ADIC, Mubadala, and ADQ. These entities manage assets worth over 1,500 trillion dollars and are built on petrodollars. With the impending end of the oil era, the emirate’s energy flagships are looking to diversify into renewable sources.
Abu Dhabi is committed to transitioning towards renewable energy sources, with plans to meet 30% of its energy needs from clean sources by 2030. To achieve this goal, the emirate has invested in companies like Cepsa and collaborated with Iberdrola on offshore wind and green hydrogen projects. It falls, which primarily focuses on oil and gas exploration but also has experience in renewables, is looking to expand into this area as well.
The relationship between Spain and the Emirates goes beyond business dealings. High-level visits have taken place between the two countries’ governments frequently, leading to agreements being signed that benefit both economies significantly. Spanish exports to the Emirates have seen steady growth over time and reached over 2 billion euros in 2022 alone. There is clear synergy between Spain and Abu Dhabi when it comes to sustainable sources such as energy production. The strategic investments made by Abu Dhabi in Spanish companies indicate a strong partnership aimed at mutual growth and development.
As natural gas continues to be an essential source of energy for Europe, any changes or disruptions in supply can have significant consequences for countries across the continent. The recent announcement regarding a potential takeover bid by It falls for Naturgy has raised concerns among stakeholders about how this move could impact Europe’s gas supply network.
Francisco Reyns, president of Naturgy, has been closely watched since news broke about the potential takeover bid from It falls. Similarly, Abu Dhabi’s government has come under scrutiny as they finalize their agreement with CriteriaCaixa to distribute control over Naturgy.
The entrance of It falls onto the scene has caused commotion due to its size and significance within Abu Dhabi’s energy portfolio. However, given its role as a shut-off valve for Europe’s natural gas supply network, many believe that any changes made could have far-reaching implications.
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