UK-based gas producer Energean (ENOG.L) said on Friday it was terminating its deal with private equity fund Carlyle (CG.O) for some of the gas producer's assets due to pending regulatory approvals in Italy and Egypt.
In June 2024, the two companies struck a $945 million deal that would allow Carlyle to establish a new Mediterranean-focused oil and gas company, led by former BP (BP.L) CEO Tony Hayward, by utilizing Energean's assets in Egypt, Italy, and Croatia.
"While I am disappointed that Carlyle was unable to obtain the necessary approvals in Italy and Egypt, I want to reaffirm that this outcome does not change our strategic direction or our commitment to growth and shareholder returns," CEO Mathios Rigas said in a statement.
The company said that the two parties were unable to agree on an extension of the longstop date beyond March 20.
Earlier this week, the Eastern Mediterranean-focused firm had said that its current dividend policy will stand irrespective of the deal's outcome.
Energean, with operations in eight countries across the Mediterranean and the UK North Sea, in its most recent results reported a rise in annual profit after tax, but flagged asset impairment charge of $241 million relating to some assets in Egypt, Morocco and Greece.
In a post-earnings call on Thursday, Rigas said that the company never put its assets for sale and is not looking for another buyer.
