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Naturgy (Baa2/BBB): Adnoc Interest

UTILITIES

Potential fundamental positive for NTGYM, removing overhang and introducing a strong anchor shareholder. Strategy has been unclear, and a deal may help the company move forward. Limited spread upside at current valuations however


• Building on newspaper reports from yesterday of UAE interest, Spanish newspaper reports Taqa (Andoc) is in talks to buy 40% of Naturgy from GIP and CVC.

• This would trigger a mandatory takeover bid that would not succeed with Criteria maintaining their 27% stake.

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