Galp and Moeve End Downstream Merger Talks

On Oct 26, Galp Energia announced that negotiations with Spain’s Moeve to merge their refining, chemicals and fuel-retail operations had broken down. The failure ends a non-binding agreement announced on Jan 8 2026 that aimed to create two joint ventures—IndustrialCo for downstream processing and RetailCo for fuel distribution—covering the Iberian Peninsula.

Moeve and Galp cancel their downstream merger

The proposed partnership would have combined Galp’s Sines refinery in Portugal with Moeve’s Huelva and Algeciras refineries in Spain, forming an industrial platform with roughly 700,000 bbl/d of processing capacity and a retail network of about 3,500 service stations. The deal was positioned as a response to tightening environmental regulations and the need for scale to fund low-carbon projects across Europe.

Oil Price

• Jan 8 2026 – Galp and Moeve sign a non-binding agreement to explore a downstream merger.

Bloomberg

• Mid-2026 – Initial target for a definitive agreement (later pushed to the second half of the year).

Moeve and Galp cancel their downstream merger

• Oct 26 – Parties announce the termination of talks after failing to reach commercially acceptable terms.

Moeve and Galp cancel their downstream merger

• Projected joint capacity: ? 700,000 bbl/d.

Oil Price

• Combined retail footprint: ? 3,500 stations, handling > 6.5 million t of petroleum products annually.

Moeve and Galp cancel their downstream merger

• Galp’s share price fell 7.5 % on the news, making it one of the worst performers on the STOXX 600 (Euronext/Reuters).

Galp tie-up talks with Moeve collapse, sending its shares tumbling

• Galp reported a 68 % rise in third-quarter adjusted net profit, driven by record refining margins and higher oil prices.

Galp tie-up talks with Moeve collapse, sending its shares tumbling

• Paula Amorim, Galp’s chairwoman, said the strategic rationale for the transaction remained compelling but the parties could not achieve the commercial alignment needed for a lasting, value-accretive partnership.

Galp tie-up talks with Moeve collapse, sending its shares tumbling

• Both companies affirmed that the termination will not affect their existing operations or ongoing investments in green hydrogen, biofuels and other transition projects.

Galp and Moeve abandon Iberian refining merger as Portuguese energy firm posts profit surge

The Portuguese government expressed concern over the potential loss of control of the Sines refinery, a strategic national asset. Officials warned they would act to safeguard the refinery’s operation, workforce and alignment with Portugal’s energy-security goals. Trade unions in the Alentejo region also opposed the deal, fearing foreign ownership could lead to rationalisation or closure of the plant.

Galp and Moeve abandon Iberian refining merger as Portuguese energy firm posts profit surge

• ECO (cited by Bloomberg) reported that Paula Amorim had not accepted specific demands from Moeve, implying a disagreement over terms.

Bloomberg

• No definitive information has been released on the exact valuation or governance points that stalled the agreement.

Galp tie-up talks with Moeve collapse, sending its shares tumbling

• “While the strategic rationale underpinning the proposed transaction remains compelling, the parties were unable to achieve the necessary commercial alignment to support an enduring and value-accretive partnership,” — Galp Chairwoman Paula Amorim

Galp tie-up talks with Moeve collapse, sending its shares tumbling

Moeve will continue to implement its Positive Motion roadmap, including construction of Europe’s largest green-hydrogen project (300 MW, > €1 bn) and a 2G biofuels complex slated for 2027 commissioning. Galp will focus on its upstream portfolio in Brazil and further development of renewable and low-carbon assets at the Sines site, while maintaining financial discipline in its capital allocation.

Moeve and Galp cancel their downstream merger