Latham & Watkins and Allen & Overy are advising as Spanish energy giant Repsol Upstream sells a $4.8 billion stake, equating to 25% of Repsol’s entire global upstream oil and gas business, to U.S. private equity house EIG.
Through the deal, which comprises around $3.4 billion cash and $1.4 billion net debt, Repsol “will retain operational control of this business” and “the newly structured entity will maintain its workforce and existing management team as well as the current business plan”, according to its announcement.
The purchaser, EIG, is being advised by a team of international Latham & Watkins lawyers, comprising London corporate partners Sam Newhouse and Simon Tysoe, finance partners Tom Bartlett, Conrad Andersen and Dean Naumowicz, tax partner Karl Mah and antitrust partner Jonathan Parker, according to the firm’s statement. Partner Charles Claypoole is leading on sanction matters.
Nine London associates, two Madrid associates, and a team of four Washington D.C. lawyers including a partner all have a role on the deal.
EIG are key clients for Latham. In April 2021, the London office advised EIG on its acquisition of a $12.4 billion stake in Aramco Oil Pipelines, and in May last month the firm advised EIG on Blackstone Credit’s 49% ownership acquisition of the companies stake in Elba Island LNG facility in the U.S.
Allen & Overy Madrid partner Inigo de Val and London partner John Geraghty advised Repsol, according to people involved in the deal.
The transaction values Repsol Upstream at a total enterprise value of around $19 billion.
The agreement also includes a potential IPO of the business in the U.S. from 2026 onward, “subject to favorable market conditions”.
Despite a slowing dealmaking market, some large transactions are still going ahead. Simpson Thacher & Bartlett, Eversheds Sutherland and Kirkland & Ellis advised on Oakley Capital’s investment in Phenna Group, in a deal that values the testing and inspection company at £1 billion last week, while earlier in August, Slaughter and May and Freshfields Bruckhaus Deringer bagged roles on Ted Baker’s £211 million sale.