Gas Natural wants to get back into M&A activity. After managing the sale of Unión Fenosa, the company, which is run by Salvador Gabarró, has identified opportunities for 3 billion euros of growth in Latin America. Sources from the company explained to elEconomista that this amount is not accounted for in its current 2010-2014 Strategic Plan, which forecasted a 9 billion euro profit, and will only be realized if the economic environment is favorable to international expansion.
But the gas company has the wind at its back and will evidently include this new information in their plan to leverage potential growth in these markets. There has already been a strong increase in demand, particularly in Brazil, which has seen double-digit growth.
Gas Natural is already analyzing various opportunities, and Brazil is going to be a clear goal. For this reason, support for the bids has been put forward for small hydroelectirics and thermoelectrics. Further, the group is participating in anticipated wind power company adjudications that could close next June. Endesa, a competitor, has already invested more than 700 million euros.
On the contrary, Gas Natural is ready to participate in a possible second round of share selling if Ashmore Energy keeps breaking itself up into small pieces, like Iberdrola did several months ago when it acquired the Brazilian distributor Elektro for more than 1.7 billion euros. The gas company wants to strengthen its ability to distribute gas and respond to Brazil?s significant dependence on hydroelectric power.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro (joseluisdeharo@eleconomista.es)
