Japanese companies enter Portuguese gas distribution

The European Commission has approved the creation of a significant holding by Japan’s Marubeni Corporation and Toho Gas Company in Portugal’s gas distribution sector, green-lighting their acquisition of shares in Portuguese company Galp Gás Natural Distribuição. Henceforth, the Japanese companies will share control with Portugal’s Galp Energia SGPS, a key oil, gas and power generation company. Marubeni is a global energy trading company, and Toho Gas focuses on gas supply and related services in Japan, which has thus far not operated in the European Union (EU).

Acting as the EU’s senior competition authority, the Commission said this proposed acquisition would raise no competition concerns ‘because it creates no new overlaps between the companies’ activities’, and approved the deal without conditions. The Japanese companies will effectively each hold a 11.25% stake in Galp Gás Natural Distribuição, the largest gas distribution company in Portugal with approximately 70% market share, supplying gas to 1.05mn households. A Marubeni note said it was ‘looking to explore further growth in the European market’ following its Portuguese investment.