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Abu Dhabi's government-owned International Petroleum Investment Company (IPIC) and Banco Santander S.A. (Santander) have announced IPIC’s agreement to acquire Santander’s 32.5 percent stake in Compañía Española de Petróleos S.A. (CEPSA).

Santander has agreed to sell its 32.5 percent stake in CEPSA at a price of EUR 33 per share to IPIC, an existing shareholder in the Spanish energy firm. Both companies said they expect Unión Fenosa, S.A. will also sell its 5 percent stake to IPIC on the same terms.

With the new acquisitions, IPIC will now own approximately 47 percent of Cepsa, becoming the second largest shareholder of Cepsa, after Total, which has a 48.83 percent stake.

Closing of the transaction is subject to a number of conditions precedent, including obtaining required regulatory approvals and financing for the transaction.

Commenting on the news, Khadem al Qubaisi, IPIC’s Managing Director, said. “IPIC is delighted to increase its participation in Cepsa, an important company in the Iberian energy sector. Following completion of these acquisitions, IPIC will endeavor to play an active and constructive role in Cepsa’s development.”

Alfredo Saenz, Santander’s Chief Executive Officer, said: “The holding in Cepsa was the last of a series of industrial stakes Banco Santander has sold in recent years in order to focus exclusively on its core retail and commercial banking activities."