Carlyle's Energean Deal Stumbles Over Regulatory Hurdles

Carlyle's acquisition of Energean assets, valued at up to $945 million, faces potential collapse due to unresolved regulatory hurdles in Italy and Egypt. Originally agreed upon in June, the deal aims to establish a new Mediterranean-focused oil and gas company. An extension has yet to be agreed upon.

The high-stakes acquisition deal between Carlyle and Energean for assets worth up to $945 million is currently wavering due to persistent regulatory challenges. According to Energean's statement on Monday, specific approvals in Italy and Egypt have yet to be acquired, putting the arrangement at risk of collapse as a crucial deadline looms this week.

The deal, initially finalized last June, was set to facilitate the formation of a new Mediterranean-focused oil and gas enterprise, headed by former BP CEO Tony Hayward. This company would be built on the foundation of Energean's assets across key locations in Egypt, Italy, and Croatia. However, the lack of progress on regulatory fronts raises serious concerns about its viability.

The situation remains tense as Energean warns that without an extension, the agreement may have to be terminated. With no assurances provided regarding the satisfaction of regulatory conditions by the stipulated deadline of March 20, 2025, stakeholders are left in anticipation.

(With inputs from agencies.)