Collapse of Galp-Moeve European Refining Merger

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The expected merger of the refining and fuel retail businesses of Portugal' s Galp and Spain's Moeve has fallen through, ending what could have been the creation of one of Europe's largest downstream energy operators.

Talks at End

Portugal' s Galp and Spain's Moeve have ended merger talks that were expected to create one of Europe's largest downstream energy operators.

The merger, which was supposed to have concluded in July this year, has been in negotiations since the beginning of 2026 but has now been called off after Galp stated that the parties were "unable to achieve the necessary commercial alignment." The goal was to create an industrial platform focused on refining, chemicals, trading, green molecules and low-carbon fuels, serving B2B customers and given the placeholder name IndustrialCo as well as a merged fuel retail business including EV charging and convenience, called RetailCo. The deal would have seen Galp's 225,000 barrel per day (bpd) Sines Refinery - Portugal's only crude oil refinery - merged with Moeve's key Spanish refineries, the 221,000 bpd La Rabida Refinery in Huelva and the 247,000 bpd Gibraltar Refinery. IndustrialCo would have been one of Europe's largest refining operations with almost 700,000 bpd of combined processing capacity. It would have been majority controlled by Moeve's shareholders, Abu Dhabi's Mubadala Investment Company and U.S. investment firm Carlyle Group. Galp would have retained a stake greater than 20%. According to Industrial Info Resources data, there are 109 projects across Galp's and Moeve's refineries in Portugal and Spain worth US$5 billion in investment. 

Fuel Operations

The proposed merger would have also seen the merger of both companies' retail fuel operations, comprising 3,500 service stations including EV charging, to create a pan-Iberian network, primarily located across Spain and Portugal. RetailCo would have been co-controlled by Moeve's current shareholders and Galp. 

Why it Failed

Neither Galp nor Moeve gave a specific reason for the discussions failing. According to Galp's Paula Amorim, Chair of the Board of Directors: "Following a period of in-depth negotiations, marked by a strong commitment from both parties to explore the potential of this combination, and despite all efforts made, it was not possible to reach an agreement that would allow the realization of a high-potential opportunity to create a major European downstream operator. Although the strategic rationale underlying the proposed operation continues to make sense, the parties were unable to achieve the necessary commercial alignment to establish a lasting and value-generating partnership in the long term." 

The fallout of the collapse was more notable for Galp, which saw its share value drop 9%. Amorim stated that Galp remained attractive for consolidation with other potential partners. Industry speculation surrounding the failure revolves around possible impact from the war in Iran on the fuel and refining sector and unease in Portugal at handing over majority control of the country's only refinery to a company controlled by a United Arab Emirates fund. 

Key Takeaways

• The expected merger of the refining and fuel retail businesses of Portugal' s Galp and Spain's Moeve has fallen through.
• It would have created a refining operation with a combined processing capacity of almost 700,000 bpd. 
• Industrial Info Resources is tracking 109 projects across Galp's and Moeve's refineries in Portugal and Spain worth US$5 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).