Carlyle Group to buy minority stake in Cepsa from Abu Dhabi’s Mubadala

Funds affiliated with global investment firm Carlyle Group have agreed to purchase a minority shareholding in Spanish integrated oil and gas company Compañía Española de Petróleos (Cepsa).

The deal will see Carlyle acquire between 30% and 40% in Cepsa from Mubadala. According to Reuters, the stake is valued at $4.8bn.

With the transaction, the total enterprise value of Cepsa reaches $12bn. Following the completion of the transaction, Mubadala will continue to retain a majority stake in the energy company.

Mubadala Investment Company Petroleum and Petrochemicals CEO Musabbeh Al Kaabi said: “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.”

The final shareholding of the companies will only be confirmed once the transaction is closed.

Cepsa operates assets across the full petroleum value chain in more than 20 countries. The company also has interests in the renewables sector.

The company’s upstream interests include a 20% stake in SARB and Umm Lulu concession located offshore Abu Dhabi. Cepsa acquired the stake through a concession agreement signed with Adnoc last February.

The Spanish firm also has oil and gas assets in Algeria and operations in Central and South America, as well as South East Asia.

Cepsa is involved in the operations of three oilfields in the Berkine basin in Algeria in partnership with Sonatrach.

Carlyle International Energy Partners head Marcel Van Poecke said: “We are delighted to partner with Mubadala and Cepsa’s management team through our commitment to invest in Cepsa, which offers such strong potential and future opportunities in the global energy sector.”

Other assets owned by Cepsa include a network of service stations across the Iberian Peninsula and two refineries in Spain.

Subject to receipt of customary regulatory approvals, the closure of the transaction is anticipated to take place by the end of this year.