Portuguese oil and gas company Galp Energia SGPS (GALP.LB) plans to approach Spanish-Argentine oil company Repsol YPF SA (REP) in search of closer ties between the two companies, possibly a merger, daily Diario Economico reports, Friday citing sources close to the situation.
The report adds that Galp's Chief Executive Manuel Ferreira de Oliveira already informed the country's prime minister of his plans, although shareholders' interests could be difficult to reconcile.
There is currently a consolidation in the Portuguese and Spanish energy sector, with Gas Natural SDG (GAS.MC), where Repsol owns close to 31%, currently undergoing a merger with Spanish power company Union Fenosa SA (UNF.MC).