Moeve and Galp end talks to merge Iberian refining and fuel retail units

Talks end without agreement

Moeve and Galp have ended negotiations to combine their downstream businesses, the refining and fuel retail operations that would have formed a larger energy group on the Iberian Peninsula. The companies announced the outcome on Monday, 26 October 2026, closing the door on a non-binding agreement they had reached on 8 January 2026 to explore the deal.

The joint statement said the companies did not reach terms that met their strategic and financial criteria:

“They did not reach definitive terms that met their respective strategic and financial criteria to support a lasting and value-generating alliance.”

Galp's separate statement said that, although the strategic rationale still made sense, the partners could not reach the commercial alignment needed for a long-term partnership. Galp did not specify the reasons.

What the combination would have created

The plan split the businesses into two platforms. IndustrialCo would have covered refining, chemicals, trading, green molecules and low-carbon fuels for business clients. RetailCo would have handled fuel sales, including electric vehicle charging, and convenience services for retail and mobility customers. Moeve's current shareholders, Mubadala and Carlyle, would have controlled IndustrialCo with 80%, while Galp would have kept a stake above 20%.

The Spanish refineries in Cádiz and Huelva and the Sines refinery in Portugal would have been grouped in IndustrialCo. The companies had announced in January plans for a pan-Iberian network of 3,500 service stations.

Market conditions and timeline

Sector sources said the international energy crisis that followed the outbreak of the Middle East conflict in late February, along with the market volatility it caused, made a complicated deal harder to finish. Refining margins had fallen sharply as tensions from the war in Iran rattled oil markets, which made it hard to agree on a value for the businesses.

The companies first set a deadline of mid-year for the talks, then extended them into the second half of 2026 in July. On 25 October, the Portuguese news website ECO reported, citing two unidentified sources, that the combination was at risk of collapsing.

Moeve's strategy

Moeve described itself as one of the main energy companies on the Iberian Peninsula, with a refining base and the second-largest service station network in Spain. It said it remains fully focused on its Positive Motion strategy, which aims to make it a European leader in green molecules and sustainable mobility by 2030. Its chief executive, Maarten Wetselaar, said:

“Positive Motion has always been an independent strategy.”

He added that combining downstream operations with Galp would have accelerated value creation but was never a condition for Positive Motion. Moeve has started building what it describes as the largest green hydrogen project in Europe, with an initial capacity of 300 MW and an investment above 1 billion euros. Its second-generation biofuels complex, an investment of 1.2 billion euros, is due to start operating in 2027.