Japanese-based Marubeni and Toho Gas have signed an agreement to acquire a 22.5% stake in Portuguese energy firm Galp Energia’s wholly-owned gas distribution company, Galp Gás Natural Distribuição (GGND).
The acquisition will be made through an equally owned joint venture set up by Marubeni and Toho Gas.
GGND has an estimated 70% market share and distributes gas to 1.05 million households, including the Portuguese capital Lisbon.
Marubeni said that the deal is the company’s first in the Portugal gas distribution sector.
The company owns and operates a gas pipeline and gas distribution business in Australia, and is planning to explore further growth in the European market following the transaction.
Through its participation in GGND, Marubeni aims to develop the infrastructure sector in Portugal by using knowledge acquired from its business operations in Portugal and other countries.
After completion of the transaction, GGND will become an affiliate of Marubeni, Nikkei reported.
Marubeni initially entered the power generation market in Portugal in 2013 in and has power generation assets with a total capacity of 3,000MW.
The company expanded its presence in 2014 by investing in the country’s water company Administração e Gestão de Sistemas de Salubridade (AGS).
Together with these acquisitions, the transaction will form Marubeni’s participation in the Portuguese infrastructure sector.
