The government is analyzing BlackRock’s entry into Naturgy capital after the purchase of GIP
VALENCIA (EP). The government is reviewing BlackRock’s entry into Naturgy, given the acquisition by US fund Global Infrastructure Partners (GIP), which owns a 20% stake in the Spanish energy company, Economy Ministry sources told Europa Press.
GIP, also a US fund, has been a Naturgy shareholder since 2016, when it acquired a 20% stake in the energy company for $3.8 billion.
A possible change in ownership of this stake in Naturgy has already drawn criticism from PSOE’s government partners. So, Sumar’s representative in the Congress on economic and financial issues, Carlos Martinand former Minister of Equality, Irene Monteroasked the government to prevent BlackRock from acquiring this 20% stake in GIP.
“The government must prevent BlackRock from taking over 20% of Naturgy,” Martin said in a message posted on social media site X, formerly known as Twitter. A spokesman for the multinational group in Madrid said the investment fund has a “colossal size and significant exposure” to 19 important companies in the country.
Among other holdings, BlackRock owns shares of more than 5% in Iberdrola, ACS, Repsol or Santander, as recorded in the reports of the National Securities Market Commission (CNMV), thus being one of the main investors in the Ibex 35 company.
Naturgy, government strategic company
The government had already clarified Naturgy’s strategic nature in a partial takeover bid submitted by Australian fund IFM in 2021, which was ultimately approved, albeit with reservations.
In this case, the operation had to receive approval from the Council of Ministers due to protection rules approved by the government in response to the Covid-19 crisis, which allowed the executive to veto the purchase by a foreign investor of more than 10% of a Spanish company in a strategic sector.
However, in this case, there will definitely not be a change in Naturgy’s shareholding, since GIP is already present in the capital and BlackRock is acquiring this fund without directly entering the energy company.
Last Friday, BlackRock announced an agreement to acquire investment fund GIP, owner of 20% of Naturgy, for $12.5 billion (11.413 million euros).
The deal will consist of a cash payment of $3 billion (€2.739 million) and approximately 12 million BlackRock shares valued at approximately $9.500 million (€8.674 million).
Moreover, the current President and CEO of GIP, Adebayo Ogunlesiwill join the BlackRock board of directors upon completion of the transaction, which is expected before the end of the third quarter of 2024.