“BlackRock adds stability to companies”
In an interview with EXPANSIÓN in Davos, Reines dispelled concerns surrounding the purchase of GIP, one of its largest shareholders, by BlackRock.
Francisco Reines, president of Naturgy, always takes a calm view of his surroundings, although on many occasions the dynamics of the business market have put him in the spotlight.
Now, with his usual calm, Reines (Mallorca, 1963) looks with optimismSame as BlackRock’s purchase of Global Infrastructure Partners (GIP), owner of 20% of Naturgy.
“Obviously he did not know about the operation, as is usually the case in such cases,” Reines tells EXPANSIÓN at the World Economic Forum in Davos, Switzerland, which he attended again this year. The acquisition, considered historic worldwide in the investment fund management sector, once again places Naturgy at the epicenter of Spain’s troubled energy market. The purchase, announced last Friday, will make BlackRock the largest owner of energy companies in Spain.
BlackRock, the world’s largest investment fund, will add the financial stakes it already has in Iberdrola, Repsol, Enagás, Redeia and Solaria to those GIP has in Naturgy, where it has two seats on the board of directors.
This omnipresent force has begun to raise some concerns at a political level in Spain, while controversial transactions such as the entry of Saudi state-owned STC into Telefónica have nerves frayed.
“Great news”
Soumar and Podemos raise the dangers of allegedly unwanted foreign investment and ask the government to stop BlackRock from acquiring 20% of Naturgy. This group is the first gas company in Spain and the third largest electricity company and therefore a strategic company in terms of national security of energy supply.
Despite the political noise, Reines sees the alliance between BlackRock and GIP as a positive step.
“I believe this is great news and important recognition for the GIP partners, who in a relatively short time have been able to create a project of high value and recognized prestige at the global level,” he comments.
On the other hand, “BlackRock knows Spain well as it invests in many of the major listed companies and especially in several energy companies for which it adds additional stability.”
“Partners in Medgaz”
In Naturgy’s case, “BlackRock is already a known partner with whom we share ownership of the Medgaz pipeline.” In particular, Naturgy and BlackRock each share 50% of Medina, which owns 49% of Medgaz. The remaining 51% is in the hands of the Algerian state hydrocarbon monopoly Sonatrach.
BlackRock’s alliance with Naturgy in Medgaz dates back to 2020, when the Spanish group sold part of Medgaz shares to the fund, which controls the main gas pipeline currently in operation, supplying gas from Algeria to Spain.
GIP, which joined Naturgy in 2016, was already on the company’s board when it joined forces with BlackRock, so in practice the two funds followed parallel paths to Naturgy.
“There is alignment”
Thanks to BlackRock, Raines said, “we were able to make sure there was alignment of interests and long-term vision.” While “there are still months to complete this transaction, we understand that this also represents some recognition of Naturgy’s ongoing project,” he adds.
Reines is also encouraged by the new structure BlackRock has announced will emerge following the GIP integration. As EXPANSIÓN published this week, BlackRock directors gave a presentation in Davos, limited to select international media, in which they explained that GIP will be one of four areas in which BlackRock will be structured. GIP will retain its brand and its own autonomy, while combining its own infrastructure investments with those of BlackRock itself.
“We still have months to complete this deal,” Reines insists. But “it has been made public that as a result of this transaction, it is expected that management of the infrastructure assets will continue to be transferred to the GIP partners already on the Naturgy board,” he says, breathing calmly.
“The remaining main shareholders, Criteria (La Caixa group), Rioja (a company created by the CVC fund and Corporación Alba) and IFM, continue to maintain their participation and remain committed to the business project that they support with their participation. on the board of directors,” adds Reines.
“We look closely at corporate transactions as long as they add value.”
“Our commitment to the energy transition and decarbonization is strong, and the numbers and facts confirm this,” says Francisco Reines, chief executive of Naturgy.
“In 2018, we began a path of no return to more renewable generation, not only out of conviction, but also because of the demands of the market and our customers.” Between 2014 and 2018, the group invested “around €1 billion in generation from renewable sources.”
Over the past five years, from 2019 to 2023, “we have invested more than 4,000 million euros,” and “we estimate today that our potential investment for the next five years, from 2024 to 2028, will double to almost 8,000 euros.” millions earmarked exclusively for investment in renewable energy.”
Reines believes that “the developments confirm Naturgy’s commitment” to the ecological transition.
“At the end of last year, we almost reached 6,000 megawatts of installed emissions-free generation, and our forecast is to add another 3,000 megawatts by the end of this year, 2024.”
As the Naturgy Group has always done, “we prefer to depend on ourselves rather than on corporate operations, and that is why we focus on organic growth, although we are always sensitive to other types of operations if they add value to our strategy and to all our shareholders.” .