Moeve, Galp end talks on Iberian downstream merger
The plan would have combined three refineries and around 3,500 service stations in Spain and Portugal, but the companies failed to reach definitive commercial terms after months of negotiations.
Moeve and Galp have ended negotiations on a potential combination of their downstream businesses in the Iberian Peninsula after failing to reach definitive terms. The talks began with a non-binding agreement announced on January 8.
The plan envisaged two joint ventures. An industrial venture would have combined Galp’s Sines refinery with Moeve’s Huelva and Algeciras refineries, with around 700,000 barrels per day of crude processing capacity. Moeve would have held control, with Galp owning more than 20%. A retail venture, owned equally, would have operated about 3,500 service stations, mainly in Spain and Portugal.
“Positive Motion has always been a standalone strategy. The possible combination of the downstream business with Galp represented an opportunity to accelerate value creation, but it was never a condition for its execution. After extensive discussions, it was not possible to reach a commercial agreement with Galp,” said Maarten Wetselaar, CEO of Moeve.
Moeve will continue its transformation, building on the second-largest service station network in Spain and its refining base. The company is building a green hydrogen project with an initial capacity of 300 MW and an investment of more than €1 billion. It is also developing a €1.2 billion second-generation biofuels complex due to start operating in 2027. It has already divested more than 70% of its exploration and production assets.
Galp said the parties “were unable to achieve the necessary commercial alignment to support an enduring and value-accretive partnership.” The Portuguese company added that the outcome has no impact on its operations, as its downstream business is supported by its retail network in Portugal and energy transition projects in Sines.
