Repsol, S.A. (BME:REP) is considering a reverse merger of its upstream unit with potential partners including US energy producer APA Corporation (NasdaqGS:APA), people with knowledge of the matter said, as it seeks ways to list the business in New York. The Spanish oil and gas company has held exploratory discussions with APA, formerly known as Apache Corp., about the possibility of a deal, according to the people. It has also held initial talks with other potential merger partners for the business, they said.
Any deal could help Repsol bulk up the portfolio of its upstream business and provide it a faster route to becoming publicly traded. Repsol agreed in 2022 to sell a 25% stake in the upstream division to private equity firm EIG Global Energy Partners LLC in a deal valuing the business at $19 billion including debt. The transaction was aimed at helping the unit further expand in the US, while also raising funds for Repsol to invest in low-carbon activities.
Executives have said they?re preparing the upstream unit for a potential ?liquidity event,? such as a public listing, in 2026. Repsol Chief Executive Officer Josu Jon Imaz told analysts last month that company is considering options including an IPO of the business, a reverse merger with a US-listed group or the introduction of a new private investor.
Deliberations are ongoing and there?s no certainty they will lead to a transaction, the people said, asking not to be identified because the information is private. Repsol continues to study a variety of options for the business and it may still opt for an IPO or stake sale, the people said. Representatives for APA, Repsol and EIG declined to comment.
