Madrid gives conditional green light to partial takeover bid for Naturgy

"The main objective of the conditions set is to protect the public interest by maintaining the head office and activity in Spain, ensuring prudent financial management, supporting fundamental investments for the energy transition and maintaining of the stock market listing, "said the Ministry of the Economy in a press release.

IFM will have to ensure that "a significant part of the group's workforce in Spain" is "maintained" and that the group does not lose control of its subsidiaries, added the ministry.

The Australian fund required the approval of the leftist government of Pedro Sanchez because the latter strengthened the rules on foreign investments in March 2020.

Under this reform, foreign companies wishing to acquire more than 10% of a Spanish company deemed strategic must obtain the green light from the Council of Ministers.

IFM will now have to get the green light from the Spanish stock exchange authority.

The fund announced in January its intention to launch a takeover bid (takeover bid) for 22,69% of the capital of the Spanish energy giant Naturgy, for a maximum amount of 5 billion euros.

Naturgy notably owns 49% of the Medgaz gas pipeline, which links Spain to Algeria, its main gas supplier.

The former Gas Natural Fenosa renamed itself Naturgy in 2018, signaling its desire to become a global energy operator outside the gas sector alone, and to diversify in particular into renewable energies.

Naturgy has notably invested in wind and solar power in Spain, Australia and Chile.