While the Environment Minister sees the merger as positive to make Galp bigger worldwide, the Economy Minister expresses concern about the possible loss of control of the Sines refinery.
The Government appears divided regarding the merger of Galp with the Spanish company Moeve. The Environment Minister considers the alliance to be positive, while the Economy Minister is more apprehensive. The central concern is that the deal could lead to the loss of control of the Sines refinery, a strategic asset for the country.
The deal is not yet closed. This is just a preliminary agreement, what take a minority position in refining, just above 20%. At gas stations, participation will be 50-50, but at refineries, Galp cedes control to the Spanish.
This is the main concern of the Minister of Economy, since the Sines refinery is at stake.
In a statement, almost a week after the deal was announced, Manuel Castro Almeida warned that strategic assets for national energy supply are at stake and assured that he will closely monitor the operation.
“It may be an alliance between two private companies, but the importance of the Sines refinery and the fact that the State still has a stake of more than 8% in Galp justify the government’s concerns,” he said.
Although, Not all of the Government shares these concerns. The Environment Minister’s first statements about the merger show that she views the deal favorably.
To the newspaper Eco, Maria da Graça Carvalho stated that she is aware of the advantages and possible disadvantages, but believes that the merger will be positive, making Galp a larger company worldwide.
As for the Sines refinery, the minister prefers to see the process from another perspective. He states that Portugal will not lose, but rather gain control over two more refineriesthose of Moeve. Still, one of the assumptions of the The agreement provides for Galp to have a minority stake in refining.
Contacted by SIC, the Ministry of the Environment refused any divergence between the three ministries that can influence the business, Environment, Economy and Finance, and reinforced that he continues to believe that Galp will not lose refining capacity, despite the need to closely monitor the negotiations.
Sector experts contacted by SIC reveal some concerns.
Although they consider that Galp alone could face difficulties in the future, as the refinery needs a lot of investment to keep it running, also point out flaws in this solution.
If it moves forward, Galp, as it exists today, vertically integrated, controlling production, refining, marketing and commercialization, will no longer be so, which could reduce value to the company.
