Moeve and Portugal's Galp negotiate merger of their petrol station and refining networks
The operation, which will be completed in mid-2026, will create a network of 3,500 refuelling points and a platform dedicated to “green” energy
The year 2026 has begun with the announcement of a major business move in the European fuel sector. Spanish company Moeve, formerly Cepsa, and Portuguese company Galp have announced the opening of negotiations on the possible integration of their downstream businesses. In the oil industry, this term refers to the final stages of the value chain, which focus on the transformation, processing, refining, distribution and marketing of petrol or plastics, as opposed to “upstream”, which refers to exploration and extraction.
The aim is to create an Iberian distribution giant, combining the Spanish and Portuguese companies' service station networks and refining platforms.
According to information released by both companies, this integration process will be carried out through the creation of two platforms: IndustrialCo and RetailCo.
IndustrialCo
The first will be an industrial platform focused on refining, chemicals, trading, green molecules and low-carbon fuels, aimed at serving business customers.
IndustrialCo will play a central role in attracting long-term industrial investment in Spain and Portugal and will accelerate the transformation of existing refining and industrial assets. These assets will support the development and deployment of low-carbon fuels and solutions, contributing to the reindustrialisation of the Iberian Peninsula, strengthening energy security and supporting decarbonisation targets in hard-to-decarbonise sectors.
The platform will be well positioned for the development of green hydrogen and other green and low-carbon molecules, reinforcing the strategic relevance of these refineries for both Spain and Portugal.
IndustrialCo would have a combined crude oil processing capacity of close to 700 kbpd across three industrial complexes.
From a shareholder perspective, IndustrialCo will be controlled by Mubadala and Carlyle, shareholders of Moeve, while Galp will retain a stake of more than 20%, which, according to the Portuguese company, ‘ensures long-term strategic alignment while allowing the platform to operate with the scale and focus necessary to accelerate industrial transformation.’
RetailCo
The second platform, RetailCo, will focus on fuel sales, electric vehicle charging and convenience services for retail and mobility customers, and will in turn drive the development of next-generation mobility solutions.
According to statements from Moeve and Galp, the intention is for RetailCo to combine the service station networks of both companies to create a pan-Iberian network with more than 3,500 points in both countries, with estimated aggregate sales of petroleum products to direct customers exceeding 6.5 million tonnes in 2025.
In terms of mobility, RetailCo will accelerate investment in electric vehicle charging and new-generation mobility services, supporting the transition to cleaner transport in Spain and Portugal.
The current shareholders of Moeve and Galp will have shared control of RetailCo, a balanced shareholding that, according to the Portuguese company, guarantees continued alignment in terms of strategy and investment decisions.
Pending negotiation
For the time being, the companies have set a target date of mid-2026 for the agreement to be finalised. Until then, both Moeve and Galp will continue to operate as independent companies in terms of their respective operations, supply and customer service in their respective geographical areas.
As with any merger of this magnitude, the agreement will be subject to the necessary corporate approvals by the respective shareholders' meetings, as well as to obtaining authorisations from regulatory bodies.
In addition, Moeve and Galp have committed to keeping the market, employees and other relevant stakeholders informed in accordance with their legal and communication obligations.
Strengthening the role of the Iberian Peninsula
In the words of Maarten Wetselaar, CEO of Moeve, "this potential integration represents a unique opportunity to strengthen the role of the Iberian Peninsula in the energy transition, creating platforms with the scale, resilience and investment capacity necessary to drive change quickly. By combining industrial excellence, a broad downstream business reach and a strong portfolio of low-carbon projects, our goal is to attract long-term capital and accelerate the deployment of solutions that support competitiveness, decarbonisation and economic growth."
Paula Amorim, Chair of Galp, said: "Galp's growth vision has always been based on partnerships with operators that inspire confidence and have proven to be value generators. By adding the capabilities and experience of Galp and Moeve in downstream operations, we have the opportunity to create major European players in Iberia, each benefiting from greater specialisation, targeted capital allocation and flexibility to drive sustainable growth and value creation. I am convinced that this opportunity strengthens our ability to support and promote a fair energy transition, capable of responding to changing market needs and ensuring a secure and responsible energy supply in Iberia."