Galp's Refining Merger with Moeve Falls Through

Galp Energia said on Monday talks with Spain's Moeve to combine their refining, chemicals and fuel retail businesses had collapsed, derailing a deal that would have created one of Europe's biggest refiners and sending shares in the Portuguese group down 7.5%.

Galp and Moeve, formerly known as Cepsa and owned by Abu Dhabi's Mubadala and US investment firm Carlyle CG.O, announced a non-binding agreement in January to explore merging some of their assets through two joint ventures.

"While the strategic rationale underpinning the proposed transaction remains compelling, the parties were unable to achieve the necessary commercial alignment to support an enduring and value-accretive partnership," Galp Chairwoman Paula Amorim said on Monday.

The decline in Galp shares made the stock one of the worst performers on the pan-European STOXX 600 .STOXX, and put it on course for its biggest one-day drop in 11 months.

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