July 30, 2008

Gas Natural in Talks With ACS Over Union Fenosa Stake

Gas Natural has stated that it is negotiating with the Spanish construction company Actividades de Construccion y Servicios over the prospective acquisition of the latter's 45% majority stake in electricity utility Union Fenosa, reported Dow Jones.

The news source reported that Gas Natural and Actividades de Construccion y Servicios (ACS) have not yet come to a mutual agreement over the transaction.

ACS also owns around 13% of Spanish energy major Iberdrola, and the divestment of its 45% stake in Union Fenosa is reported to be in line with its objective of focusing its resources on transforming Iberdrola into an energy giant. ACS is also in talks with other interested parties regarding the stake sale, according to Dow Jones.

The proposed takeover of ACS's stake in Union Fenosa could cost Gas Natural around E5.9 billion at current market prices and would create a company with a combined value of approximately E29 billion. Pursuant to Spanish merger regulations, Gas Natural will have to make an offer for all of Union Fenosa if it buys in excess of 30% of the company.