Spain approves BlackRock's bid for GIP, impacting Naturgy - report

The Spanish government on Tuesday approved BlackRock Inc’s (NYSE:BLK) bid to acquire Global Infrastructure Partners (GIP), paving the way for the US asset management giant to take GIP’s place as a significant shareholder of Naturgy Energy Group SA (BME:NTGY).

News agency Europa Press was the first to report the government’s decision, citing sources within the ministry of economy.

GIP holds a 20% stake in Naturgy, a utility with critical infrastructure assets in Spain’s power and gas sectors. It has a status as a strategic company for Spain and government approval is necessary for any non-EU investor to acquire a stake exceeding 10%.

Europa Press cited the ministry sources as stating that Spain’s regulations maintain a balance between attracting investment and safeguarding the strategic interests of the country.

According to Europa Press, the Spanish government imposed conditions on BlackRock’s bid similar to those applied in August 2021 when Australian fund IFM sought approval to buy up to 22.689% in Naturgy. The conditions included maintaining Naturgy’s headquarters and activity in Spain, ensuring prudent financial management, support for its energy transition investments, and keeping the utility listed on the stock exchange.

The transaction has reportedly been notified to the European Commission and received a favorable report from Spain’s Foreign Investment Board.

Naturgy’s largest shareholder is Spanish investment holding company Criteria Caixa, with a 26.7% stake. Other significant shareholders, besides GIP, include Luxembourg-based private equity firm CVC, Algerian state-owned oil company Sonatrach and IFM, which ultimately landed on 15%.

BlackRock announced on September 13 that it expects to complete the acquisition of GIP on October 1, 2024, subject to regulatory approvals and other customary closing conditions.

Choose your newsletter by Renewables Now. Join for free!