Mubadala Investment Company and Carlyle Group today announced that funds affiliated with Carlyle will acquire a significant minority interest in Compania Espanola de Petroleos, Cepsa, from Mubadala.

Headquartered in Madrid, Spain, Cepsa is Europe’s largest privately-owned integrated oil and gas company. As part of the agreement, Carlyle will acquire a stake in Cepsa of between 30 percent and 40 percent The transaction is subject to customary regulatory approvals and is expected to close by end 2019. The agreement marks the successful conclusion of a dual-track process through a public offering and private placement, conducted by Mubadala to bring in new partners as part of its portfolio management strategy.

"We are pleased to have reached agreement with Carlyle and to have them partner with us as shareholders in Cepsa. Carlyle is an established, respected, and experienced investor with significant assets under management in the global energy sector," said Musabbeh Al Kaabi, CEO of Petroleum and Petrochemicals in Mubadala.

"This represents an important milestone in Cepsa’s 90-year history. Mubadala has worked closely over the years with Cepsa’s management team to build a world-class fully integrated energy company. We now look forward to working in partnership with Carlyle which has a significant track record and energy sector capabilities, and with Cepsa’s management to further enhance and grow the business."

In turn, Marcel Van Poecke, Head of Carlyle International Energy Partners, said, "We are delighted to partner with Mubadala and Cepsa’s management team through our commitment to invest in Cepsa which offers such strong potential and future opportunities in the global energy sector. We look forward to building upon Cepsa’s growth path for the benefit of their customers, suppliers and employees. Our team has an established track record with a combination of energy sector, financial and operational capabilities as well as experience across the energy value chain from upstream through downstream, refining and marketing."

At completion of the transaction, both parties’ final shareholding stakes will be confirmed. Mubadala will remain the majority shareholder of Cepsa. Equity for this investment will come from Carlyle International Energy Partners I & II, Carlyle Partners VII, Carlyle Europe Partners V and co-investors.

Cepsa is a household name and significant Spanish-headquartered integrated energy company that has evolved through a combination of organic growth and strategic acquisitions. It now operates assets across the full petroleum value chain, in more than 20 countries, delivering through-the-cycle earnings resilience and also operates in the renewables sector.

The company’s assets include significant reserves contained in both the Umm Lulu and SARB fields located offshore Abu Dhabi. Cepsa is also a significant oil producer in Algeria and operates in Central and South America and South East Asia.

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