THE WALL STREET JOURNAL: Portugal's Galp Eyes Spain Expansion Despite Shell Blow: “Earlier Wednesday, Shell said it had sold its 338 gasoline stations and other assets in Spain to Disa Corporacion Petrolifera…” (ShellNews.net)

DOW JONES NEWSWIRES

Posted 9 Sept 04

LISBON -- Portuguese energy giant GalpEnergia SA (GAP.YY) will continue to seek out expansion opportunities in Spain after losing a bid to purchase Royal Dutch/Shell's (RD) retailing units there.

"GalpEnergia maintains its ambition of growing in Iberia, with the aim of achieving 8% market share in Spain," the company said in a statement late Wednesday. GalpEnergia said it would continue to focus on organic growth and remain alert to further acquisition opportunities.

Earlier Wednesday, Shell said it had sold its 338 gasoline stations and other assets in Spain to Disa Corporacion Petrolifera, a Spanish retail-oriented energy company. Financial terms weren't provided. Disa will become the country's fourth-largest oil operator following the purchase.

Disa will continue to operate the gas stations under the Shell brand.

GalpEnergia had been considered the frontrunner to buy Shell 's downstream assets, with Portuguese and Spanish media reporting the company was offering between EUR300 million and EUR500 million for the retail network. In its statement Wednesday, GalpEnergia gave no specific details of its bid, but said it had presented its "best offer."

-By Erik T. Burns, Dow Jones Newswires; +351 21 319 1863; erik.burns@dowjones.com