Carlyle Group has agreed to buy a 30-40 per cent stake in Cepsa from Abu Dhabi’s Mubadala Investment, in a deal that values the Spanish energy company at US$12 billion.
Mubadala, which will remain a majority shareholder said the deal is expected to close by the end of 2019 and final shareholding stakes of both parties will be confirmed then.
Cepsa is Europe’s biggest privately-owned oil and gas company, while Carlyle is a U.S.-based global investment firm. Equity for the investment will come from Carlyle International Energy Partners I & II, Carlyle Partners VII, Carlyle Europe Partners V and co-investors.
"Mubadala has worked closely over the years with Cepsa’s management team to build a world-class fully integrated energy company," said Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala. "We now look forward to working in partnership with Carlyle which has a significant track record and energy sector capabilities, and with Cepsa’s management to further enhance and grow the business. We share a common view about the strength and potential of Cepsa’s business and are confident in the company’s ability to continue its excellent operational and financial performance, which was reflected in the valuation we maintained throughout the process."
Mubadala said the agreement marks the conclusion of a dual-track process through a public offering and private placement to bring in new partners as part of its portfolio management strategy. The transaction is subject to regulatory approvals.
Marcel Van Poecke, head of Carlyle International Energy Partners, said Cepsa offers strong potential and future opportunities in the global energy sector. "We look forward to building upon Cepsa’s growth path for the benefit of their customers, suppliers and employees. Our team has an established track record with a combination of energy sector, financial and operational capabilities as well as experience across the energy value chain from upstream through downstream, refining and marketing,” he added.