After the blackout: REE and Enagás merger? Surprise for CECOT in Sabadell's takeover bid

Last Monday's disturbing blackout on the peninsula has once again energized some supporters of the project to integrate the two largest Spanish energy grid operators, or Transmission System Operators (TSOs), as they are technically known in the sector. The gas company Enagas and the electricity company Redeia-REE, the latter at the center of controversy over its alleged deficits or management errors. These two transmission system operators, or Transmission System Operators (TSOs), are the largest in this duo. The largest in this duo is Redeia-REE, with a market capitalization of 9.6 billion euros; Enagás, with 3.6 billion euros.

Both companies have the State as their largest shareholder, through the company that holds the majority of their business interests, SEPI, chaired by Belén Gualda. 5% in the gas company, 20% in the electricity company. But this isn't the only common shareholder; both also include Pontegadea, owned by Amancio Ortega, and the massive US fund Blackrock.

Catalan Antoni Llardén is the non-executive chairman of Enagás, and Beatriz Corredor, former Housing Minister under José Luis Rodríguez Zapatero, is the chairman of REE, which is the center of attention.

Shortly after the pandemic, this merger was already on the table. Enagás was at the beginning of its transformation process in light of the progressive abandonment of gas advocated by Europe, and the merger offered tantalizing possibilities for an alternative future.

Furthermore, its management team was highly regarded by the government and the financial markets. REE, for its part, was expected to undertake significant investments. Llardén was one of the intellectual founders of the project, but Corredor, on the other hand, maintained a staunch opposition and secured the support of Prime Minister Pedro Sánchez. But now it is scorched by criticism; on the stock market, Redeia's shares fell 7% this past week, which has seen a recovery. The merger, according to sources linked to the energy sector, could be a way out of the growing criticism of the administration, and Enagas could bring its management model to the electricity sector. In any case, both the companies and SEPI assure that no action is underway.

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BBVA's hostile takeover bid for Sabadell is now entering, this time, a critical phase: the government's decision-making process. A month and a half remains to be seen. These days, following the unanimous favorable ruling from the CNMC (National Commission for the Promotion of Investments), including the unexpected vote of Pere Soler, a member close to Junts, those involved will be going all out to ensure their option wins. In Catalonia—political parties, employers' associations, unions, and professional sectors—there is clear rejection.

The world of business organizations has paid special attention to the latest statement on the matter from the Terrassa employers' association CECOT, issued last Friday, in which it harshly criticized the takeover bid.

For many, it has been an intriguing surprise, as they believed that the president of that employers' association, Xavier Panés, organically integrated into Foment and of which he is vice president, had personally leaned toward a position of more or less open support for the BBVA attack.

Critics of Panés have pointed out that he organized an appearance by BBVA president Carlos Torres at the employers' association's headquarters, agreeing to pre-arrange the questions. Added to the list is the signing, last February, of an agreement with the Basque bank for SME financing, in which he allegedly neglected to explain that this type of agreement was already in place with other financial institutions.

Sabadell was accused of leaking an email providing information to business owners about how to appear before the CNMC. This email was eventually published by El Mundo and served to unsuccessfully accuse the Catalan bank of breaching its duty of inaction while the takeover bid process was ongoing. Panés, for his part, told this newspaper that he has tried not to "be vehement in defending one side or the other, and we would be making a mistake if we did not respect the technical work of the CNMC, which is independent."