Galp Shares Slide as Refining Merger Talks With Moeve Collapse

Portugal’s Galp Energia said on Monday that its talks with Spain’s Moeve to combine their refining, chemicals and fuel retail businesses have ended without a deal, overshadowing a third-quarter profit beat and sending its shares sharply lower, Reuters reported.

Galp’s stock was among the weakest performers on the pan-European STOXX 600, down 9.7% by 1050 GMT and on course for its biggest one-day fall in 11 months, according to Reuters.

Talks end without agreement

The two companies announced a non-binding arrangement on January 8. It would have grouped Galp’s Sines refinery with Moeve’s Huelva and Algeciras plants, giving about 700,000 barrels per day of crude processing capacity, alongside a retail venture of around 3,500 service stations mainly in Spain and Portugal, Reuters and Oilprice.com reported.

Under the plan, Moeve, formerly Cepsa and owned by Abu Dhabi’s Mubadala and Carlyle, was to control the industrial venture, with Galp holding more than 20%, while the retail business would be owned equally. In July, Galp had pushed the expected signing into the second half of 2026.

Galp chair Paula Amorim said the parties could not reach the commercial alignment needed for a lasting, value-accretive partnership. Moeve chief executive Maarten Wetselaar said “it was not possible to reach a commercial agreement with Galp,” adding that the company’s strategy was never dependent on the deal, Euronews reported.

Neither company gave a specific reason. A source told Reuters that energy-market volatility linked to the Iran war made the refineries difficult to value. Portuguese outlet ECO reported, citing people familiar with the talks, that Amorim had not agreed to Moeve’s demands, according to Euronews.

Profit beat and higher guidance

The announcement came alongside quarterly results in which Galp’s adjusted net income rose 68% to €682 million, above an average analyst forecast of €634 million, Investing.com reported. Core profit climbed 67% to €1.52 billion on record refining margins, which reached US$34.0 per barrel of oil equivalent against US$9.5 a year earlier. Reported net income fell 24% to €201 million after €453 million in special charges.

Galp raised its 2026 core profit guidance to about €5 billion from around €4 billion, and lifted its operating cash flow forecast to about €3.9 billion from about €3 billion. It now assumes Brent crude at US$90 a barrel, up from US$80, while organic capital spending is unchanged at about €1 billion.

Jefferies said it saw “market focus falling on the terminated discussions” and noted there was no update on shareholder distributions. RBC analysts said investors had expected a deal early in the fourth quarter, and that its absence may call into question Galp’s premium valuation relative to peers, Reuters reported.

What’s next

Galp will keep sole ownership of its refining, chemicals and fuel retail operations while focusing on Brazilian oil and renewables, Reuters reported. The company said the outcome would not affect its existing operations. Moeve said it will continue expanding its low-carbon businesses independently. A source told Reuters there is no intention of resuming talks in the medium term.

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