Spanish energy company Moeve and Portugal's Galp are working toward signing definitive agreements on their proposed downstream merger in the second half of 2026.

Talks between the two companies continue to progress, Moeve said in its first-half 2026 financial results published on Friday. Ship & Bunker had reported in January that the two firms were exploring a potential merger of parts of their downstream businesses.

"We have made strong progress with the proposed downstream merger with Galp and expect to sign definitive agreements in the second half of the year," Maarten Wetselaar, CEO of Moeve, said in a statement accompanying the results.

The deal currently remains at a non-binding stage. It would require both corporate and regulatory approvals before it can proceed. Moeve said the proposed combination could strengthen the companies' competitive position in the Iberian energy market, where Spain's Repsol currently holds a leading position across refining, retail, and fuel supply.

The merger update coincided with Moeve's first-half financial performance. The company reported clean CCS EBITDA of €1.18 billion for the first six months of 2026, while net income rose 41% year-on-year to €458 million.

In the marine fuels sector, the two companies operate in neighboring markets. Galp supplies bunker fuels in Portugal, including biofuels and LNG, while Moeve supplies marine fuels in Spain. A combined downstream operation would unify their footprints across the Iberian Peninsula, creating an integrated supplier spanning both Atlantic and Mediterranean bunkering routes.

The proposed merger comes as European refiners and fuel distributors face pressure to consolidate amid the energy transition, with companies across the region scaling investments in biofuels, renewable diesel, and hydrogen while traditional fossil fuel margins face long-term uncertainty.

Source: Ship & Bunker