UK's Energean terminates Carlyle deal

Energean, a UK-based gas company, announced on Friday that it had terminated its agreement with Carlyle to sell some of its assets because regulatory approvals were still pending in Italy and Egypt.

In June 2024, the two companies struck a $945 million deal that would allow Carlyle to establish a new Mediterranean-focused oil and gas company, led by former BP CEO Tony Hayward, by utilizing Energean's assets in Egypt, Italy, and Croatia.

"While I'm disappointed that Carlyle wasn't able to obtain the necessary approvals for Egypt and Italy, I want reaffirm this outcome doesn't change our strategic directions or our commitment to shareholder returns and growth," Mathios said in a press release.

The company stated that both parties could not agree to extend the date of the longstop beyond the 20th March.

Earlier this week, the Eastern Mediterranean-focused firm had said that its current dividend policy will stand irrespective of the deal's outcome.

Energean has operations in eight countries in the Mediterranean Sea and UK North Sea. In its latest results, it reported an increase in annual profit, after taxes, but also flagged an asset impairment charge amounting to $241 million for some assets in Egypt. Morocco, and Greece.

Rigas stated in a conference call held after its earnings on Thursday that it has never sold any assets and does not seek another buyer. (Reporting and editing by Anandita Mehrotra in Bengaluru and Arunima Kumar; Eileen Soreng, Mrigank Dhaniwala).

(source: Reuters)