Galp Energia Talks With Moeve Collapse

By the Editorial Team · Tuesday, October 27, 2026

Galp Energia and Moeve have ended their merger discussions due to unresolved commercial terms, despite previously aiming to finalize a deal by mid-2026. The collapse of talks caused Galp’s shares to drop, but the company still reported strong quarterly earnings and raised its full-year financial outlook, underscoring its continued confidence in its strategic direction.

Galp Energia’s discussions with Moeve regarding a potential merger of their downstream operations have ended without an agreement, overshadowing the Portuguese oil and gas producer’s robust quarterly earnings and revised full-year guidance. The companies announced on Monday that talks failed due to an inability to settle on commercial terms, despite previously signing a non-binding agreement in January and aiming for a final deal by mid-2026. Galp nonetheless stated that the strategic rationale for combining the businesses remains intact.

Following the announcement, Galp’s shares dropped 11% to €20.47 ($22.89), although the stock remains up 40% for the year to date. Moeve is jointly owned by Mubadala Investment Co. and the Carlyle Group. Analysts had anticipated a deal could be concluded early in the fourth quarter. Biraj Borkhataria of RBC Capital Markets noted that a merger could have positioned Galp as a more attractive takeover target, and the breakdown raises questions about the company’s premium valuation compared with peers.

Despite the setback in merger talks, Galp reported strong third-quarter results, driving an upward revision to its annual outlook. The company posted an adjusted replacement-cost net profit of €682 million, up from €407 million in the same quarter last year. This improvement was supported by higher crude oil and natural gas prices, expanding refining margins, and increased hydrocarbon production.

Galp raised its full-year adjusted EBITDA guidance to about €5 billion ($5.60 billion) from a previous estimate near €4 billion. Adjusted operating cash flow is now forecasted at around €3.9 billion, up from roughly €3 billion. The company attributed the upgrades partly to a revised Brent crude price assumption of $90 per barrel for the year, up from $80 per barrel, along with an expected refining margin of approximately $25 per barrel of oil equivalent, doubling the prior forecast of $13. It also raised projections for gas, wind, and solar power prices.

The failed merger talks highlight the challenges of consolidation in the energy sector amid volatile commodity markets and shifting investor expectations. Galp’s focus will remain on executing its strategic priorities and capitalizing on favorable market conditions as it moves forward independently.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.