Portugal's Sines Refinery Merger: How Foreign Investors Could Shape Your Fuel Future by 2026

Portugal's Galp in Merger Talks with Spanish Firm Moeve

Galp is negotiating a restructuring with Spanish energy firm Moeve (formerly Cepsa) that could reshape its operations by mid-2026. The deal involves creating two separate platforms to operate across Spain and Portugal.

The Structure

The merger blueprint splits operations into two entities:

RetailCo, the mobility and retail arm, will be co-controlled equally by Galp and Moeve. It will operate fuel stations and retail services across Spain and Portugal.

IndustrialCo, the industrial platform, will consolidate refining, petrochemicals, trading, and low-carbon fuels including biofuels, sustainable aviation fuel, and hydrogen. This entity will span three refining sites: Moeve's facilities in Spain and Galp's Sines complex in Portugal. Galp will hold a minority stake exceeding 20%, while Moeve's backers retain majority ownership and board control.

What We Know

According to co-CEO João Diogo Marques da Silva, the assets are complementary and the company expects the combination to generate potential synergies. Silva highlighted that integrated logistics chains and retail footprints across the Iberian Peninsula position the combined entity to compete with larger European energy firms.

Galp recorded a record net profit of €1.15 billion in 2025, up 20% year-on-year. The company has emphasized that the restructuring would allow it to compete more effectively in a consolidating European energy market.

Regulatory Path Ahead

The deal requires clearance from Portuguese and EU competition authorities, along with foreign investment reviews. The parties expect a final, binding agreement by mid-2026, contingent on regulatory approvals and board approvals.

Regulatory scrutiny will focus on market competition, particularly in retail operations, and energy security considerations related to refining capacity. The Portuguese government, which holds a stake in Galp, has signaled that national energy security is a key consideration in regulatory review.

Next Steps

Both companies will continue to operate independently during due diligence and regulatory review. Legal, financial, and technical assessments are underway, with regulatory filings expected to follow once binding terms are agreed.

The outcome will affect fuel supply dynamics in Portugal and Spain, energy infrastructure control, and the region's capacity to support low-carbon fuel development as Europe transitions away from traditional energy sources.