Galp and Moeve Abandon Downstream Merger Talks as Portuguese Energy Giant Posts Record Quarterly Profit

Galp confirmed on Monday that months of negotiations to merge its downstream, refining, and distribution operations with those of Spanish rival Moeve have concluded without an agreement. In a statement, the Portuguese energy group declared it “was not possible to reach an agreement” with Moeve, whose shareholders are Abu Dhabi’s Mubadala Investment Company and U.S. private equity firm Carlyle.

Despite the breakdown in talks, Galp emphasized that the outcome does not affect its operations or strategic confidence. Chair Paula Amorim highlighted the company’s “exceptionally strong position,” citing one of the sector’s most attractive upstream growth profiles, robust industrial and commercial businesses, and a diversified portfolio encompassing renewables and significant trading activities. She noted that this business mix, underpinned by a solid balance sheet and strong cash-flow generation, provides a firm foundation for continued growth and value creation.

Moeve CEO Maarten Wetselaar echoed the sentiment, stating that while the combination represented an opportunity to accelerate value creation, the company’s strategy was never contingent on the deal. “After extensive discussions, it was not possible to reach a commercial agreement with Galp. We remain focused on executing our transformation with financial discipline and on generating sustainable long-term value,” Wetselaar said.

Portuguese outlet ECO reported on Sunday that the negotiations collapsed after Galp’s leadership declined to meet Moeve’s demands, according to sources familiar with the discussions.

Galp underscored that its downstream segment remains anchored by a leading retail network in Portugal and a significant portfolio of energy transition projects in Sines. These initiatives include one of Europe’s largest green hydrogen production projects using electrolysis and a dedicated biofuels production unit.

The announcement coincided with Galp’s third-quarter financial disclosure, which revealed a 68% year-on-year surge in net profit to €682 million. The company attributed the record result to increased oil and natural gas production in Brazil reaching new highs, strong export performance, and robust oil and gas trading activities in international markets.

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