Energean Shuts Down Carlyle Agreement Due to Delayed Regulatory Approvals

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UK-based gas producer Energean announced on Friday that it was ending its agreement with private equity fund Carlyle regarding the sale of certain assets, due to pending regulatory approvals in Italy and Egypt.

The two companies had reached a $945 million deal in June 2024, aimed at allowing Carlyle to create a new Mediterranean-focused oil and gas company, headed by former BP CEO Tony Hayward, using Energean’s assets in Egypt, Italy, and Croatia.

However, Energean’s CEO, Mathios Rigas, expressed disappointment that Carlyle could not secure the required approvals in Italy and Egypt. He emphasized that the cancellation of the deal would not affect the company’s strategic direction or its focus on growth and shareholder returns.

Energean stated that the two parties could not agree on extending the deadline beyond March 20.

Despite the deal’s collapse, Energean confirmed that its current dividend policy would remain unchanged. The company, which operates in eight countries across the Mediterranean and the UK North Sea, reported an increase in annual profit after tax in its latest results, though it also flagged a $241 million impairment charge on assets in Egypt, Morocco, and Greece.

During a post-earnings call, Rigas clarified that Energean had never actively marketed its assets for sale and was not seeking another buyer.

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