A $945 million acquisition deal between private equity firm Carlyle and oil and gas producer Energean is in jeopardy due to regulatory delays in Italy and Egypt, the companies revealed on Monday.
The agreement, signed in June 2024, was intended to facilitate Carlyle’s creation of a Mediterranean-focused oil and gas company, leveraging Energean’s assets in Egypt, Italy, and Croatia. The proposed company was to be led by former BP CEO Tony Hayward.
Energean stated that certain regulatory approvals in Italy and Egypt have yet to be obtained, and the deadline for meeting these conditions is March 20, 2025. If the approvals are not granted by this date, the transaction may be terminated, as no extension has been agreed upon.
Energean CEO Mathios Rigas attributed the delay primarily to Italian regulatory approvals, citing Carlyle’s failure to provide funding guarantees for its subsidiary. Rigas emphasized that if the issue is structural, extending the deadline would not be a viable solution.
Despite the uncertainty surrounding the deal, Rigas stated that Energean is prepared to retain the assets, which currently produce 40,000 barrels of oil equivalent per day, providing diversification beyond the company’s flagship gas fields offshore Israel.
Energean is scheduled to release its financial results on Thursday, which may provide further insights into the status of the transaction.
Source: Reuters
