Risk for national industry

The takeover bid for 100% of Naturgy, which Emirati Taqa plans to launch, will have repercussions in the gas market. This is because this operation could leave about 55% of the market share of this business within reach of the United Arab Emirates. To begin with, Cepsa is already managed by the Emirati sovereign wealth fund Mubadala, which owns 63% of its capital. Thus, 5% of Cepsa’s gas market already falls on the Arab country.

But this percentage would rise exponentially to above the aforementioned 55% if Taqa bought the 41.3% of Naturgy shares held by GIP and CVC funds, an option already being discussed. This would make Taqa Naturgy the first shareholder and give it access to 50% of the gas distribution company’s market share. The marketing and supply of these raw materials are of strategic importance to support the Spanish industry. And it is obvious that control of these activities in the hands of a few hands, especially in the hands of Emirati leaders, will create a risk for gas prices. Without a doubt, one must be vigilant to avoid this danger.

However, this situation should not happen if Taqa’s takeover bid for Naturgy is carried out in alliance with Criteria (which owns 26.7% of the capital), which will retain management control of the gas company. Therefore, this operation should not serve as an excuse for the government to facilitate his desire for interventionism in strategic companies by the entry of the state into its capital. What he has already done at Telefónica and plans to repeat at Naturgy, asking Taqa to give him 10% of the capital. In addition, the Emirates should determine what part of Naturgy’s business is strategic to the country’s interests and maintain strict independence in such matters.