BBVA, financial advisor in Enagas' acquisition of a 90% stake in NETFebruary 15, 2012
BBVA Corporate Finance has acted as sole financial advisor to Enagas in its purchase of a 90% stake in Naturgas Energia Transporte. It is the largest deal within the energy sector in Iberian market since 2010 and it reinforces BBVA as the leading M&A advisor in Spain and Portugal.
Being sole financial advisor to Enagas, strengths BBVA's position as specialist advisor in operations involving energy companies and consolidates the leadership as M&A advisor, which has been recognized since 2009 by publications such as Financial Times or mergermarket. Despite the low volume in M&A activity in Spain, BBVA Corporate Finance has participated in more than 47 transactions since 2009 and in 14 specifically in the energy sector since 2010, among which are the six major European energy firms: EDP, Galp, Enel, RWE, REN y Enagas.
The acquisition of a 90% stake in Naturgas makes it the biggest deal ever closed by Enagas and the largest within the Iberian energy sector since 2010. Furthermore, it is the second transaction related to regulated assets that has been signed since 2012 amid a high regulatory uncertainty context, both of them with the participation of BBVA.
The deal includes the acquisition of 450 km pipeline network controlled by Naturgas, subsidiary of EDP, in the north of Spain; and Irun International Connection. The acquisition is a milestone for Enagas as it extends its presence in the Basque Country and achieves a 97% market share in the energy transportation Spanish market. Enagas has set up a new company in charge of these assets, Enagas Transportes del Norte. It will also build a pipeline connecting Bilbao with Treto (Cantabria) and a new compression station with greater capacity to connect Spain and France.
BBVA advisory service satisfies both EVE (Basque Energy Board) and EDP's interests. EVE keeps its 10% stake in Naturgas, and EDP complies with its deleveraging process and the European Directive which states that vertically integrated operators of gas distribution cannot exercise control over gas transmission assets.