Suryaa International Desk: Significant developments are unfolding in the Portuguese energy sector. The Portuguese government has responded to the sudden collapse of merger negotiations between the energy firm Galp Energia and the Spanish company Moeve. Minister Manuel Castro Almeida stated that the government is considering increasing its stake in Galp. He emphasized that the government's primary duty is to ensure energy security and to prevent any threats arising from ownership changes at the Sines refinery, the country's only refinery.
The government currently holds approximately an 8 percent stake in Galp. Regarding the possibility of increasing this share in the future, the minister responded positively, noting that the government keeps a close watch on the matter and will make decisions based on prevailing circumstances. This consideration is reportedly part of a trend to strengthen national control over strategic assets. Analysts have noted that the Portuguese holding company Parpublica previously increased its stake in the power and gas grid operator REN.
Galp and Moeve had been in discussions for several months regarding the merger of their refining, chemicals, and energy retail businesses, but the talks were recently cancelled due to a failure to reach an agreement on commercial terms. While Galp shares fell following the collapse of the merger, the company management stated that it remains in a strong financial position. The Portuguese government's proactive measures to maintain control over entities of strategic importance and national energy security have gained significance in the country's financial circles.