Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised Neptune Energy Group (“Neptune”) on its entry into an exclusivity agreement under which it proposes to acquire ENGIE E&P International S.A. (“EPI”) for $3.9 billion (€3.6 billion). Neptune, backed by funds advised by The Carlyle Group (through its Carlyle International Energy Partners platform), CVC Capital Partners Fund VI and a group of co-investors would acquire a majority shareholding in EPI from France’s ENGIE Group. The proposed transaction is subject to relevant consultation processes and customary regulatory approvals with completion expected by early Q1 2018.
 
EPI is a large global E&P business focused on North West Europe and with operations in North Africa and South East Asia. The EPI business that would be acquired by Neptune includes significant North Sea operations in Norway, the Netherlands and the UK, as well as onshore Germany and Indonesia. In all, EPI operates some sixty producing oil and gas fields. It also includes the large Touat gas development underway in Algeria, where ENGIE would retain a substantial interest alongside Neptune.
 
Neptune, led by former Centrica CEO Sam Laidlaw, was launched in June 2015 to focus on investing in large oil and gas portfolios that may come available as a result of energy market dynamics.
 
The Freshfields team working on the transaction is being led by London partners Sam Newhouse, Graham Watson, Tim Wilmot and Charles Hayes. Alan Mason is leading on French law matters.
 
Commenting on the transaction, Sam Newhouse said "This landmark transaction is a market-leading demonstration of the continued trend of financial investor investment into the Oil & Gas sector. We are delighted that we have had the opportunity to combine our private equity and Oil & Gas expertise on this complex multi-jurisdictional transaction – and it has been a pleasure to work alongside the Neptune, Carlyle and CVC teams in getting to this significant milestone."