The United Arab Emirates’ Abu Dhabi National Energy Company PJSC, commonly known as Taqa, has reached out to CriteriaCaixa SA, the largest shareholder of Naturgy Energy Group SA, to revive discussions regarding a potential stake in the Spanish utility valued at €24 billion (approximately $26 billion). Sources familiar with the matter revealed that Taqa’s chairman, Mohamed Hassan Alsuwaidi, who also serves as the UAE’s investment minister, traveled to Spain for meetings with Criteria’s executives to explore this opportunity.

According to the sources, Criteria, which holds a 26.7% stake in Naturgy, expressed willingness to engage in discussions provided that two main conditions are met: Taqa should not aim for a majority stake, and there must be no diplomatic tensions with Algeria, where Naturgy has significant operations. It was noted that Criteria would reject any proposal that would reduce its status to a minor shareholder.

Ongoing discussions do not guarantee a transaction between Taqa and Criteria, as they remain confidential. In a previous attempt last year, Taqa and Criteria sought to collaborate on acquiring a group of shareholders in Naturgy, but those talks fell apart due to disagreements over control of the utility. Naturgy has faced challenges with a complex shareholder structure, where four groups hold at least 15% stakes each but have divergent interests, impacting the company’s liquidity and management’s ability to pursue investments.

The Spanish government has expressed concerns over Naturgy’s situation, as it considers the company strategic and retains the power to block any potential deal. In February, reports indicated that the government had shown support for Taqa acquiring a stake. Furthermore, the relationship with Algeria is critical, given Naturgy’s ownership of two major gas pipelines supplying fuel from Algeria to Spain. Although one pipeline has not been operational for years, the stakes remain high due to Algeria’s state-owned gas company, Sonatrach, holding a 4.1% share in Naturgy.

Taqa, with a market value nearing $95 billion, is actively seeking overseas investments as part of the UAE’s strategy to diversify its portfolio. The company is also reportedly interested in the German government’s stake in Uniper SE, as indicated by Bloomberg News in January.