EU Clears Japanese Stake in Galp Subsidiary

The European Commission (EC) has cleared Japan's Marubeni Corp and Toho Gas to acquire a 22.5% stake in Galp Gas Natural Distribuicao (GGND) which runs gas network distribution operations in different regions of Portugal.

GGND will remain controlled by Galp Energia, which announced the sale of the minority stake in late July for €138mn.

Marubeni is a global trading company while Toho Gas is mainly active in gas supply on Japan but so far has no market presence in Europe, the commission said, adding that the proposed deal would raise no competition concerns as it creates no new overlaps between the companies' activities.

Portugal's national gas and electricity transmission grids and LNG terminal are owned by REN. Chinese state companies already own equity stakes in both REN and the country's main electric utility EDP.

Mark Smedley