Marubeni Corporation and Toho Gas Co. have reached an agreement with Galp Energia, SGPS, S.A., to acquire a 22.5% stake of its wholly owned gas distribution company, Galp Gás Natural Distribuição, S.A. (GGND), through a joint venture set up by Marubeni and Toho Gas in which each will hold a 50% stake.
GGND is the largest gas distribution company in Portugal with approximately 70% market share. GGND distributes gas to 1.05 million households, including the capital of Lisbon. This transaction marks the largest equity participation by a Japanese company in the European gas distribution market, and the first in the Portugal gas distribution sector.
Marubeni first entered the Portuguese power generation market in 2013 and has power generation assets with a total capacity of 3,000 MW, accounting for approximately 20% of total domestic power production. In 2014, Marubeni expanded its presence by investing in the country’s largest water company, AGS - Administração e Gestão de Sistemas de Salubridade, providing water and sewerage services to approximately 10% of the domestic population.
Combined with these acquisitions, the transaction will form Marubeni’s integrated participation in the Portuguese infrastructure sector.
Through its participation in GGND, Marubeni is looking to develop the infrastructure sector in Portugal by utilizing knowledge acquired from its business operations in Portugal and other countries and to expand its presence to other European regions.