Carlyle and UK-based gas producer Energean have agreed to terminate their previously announced $945m transaction, initially signed in June 2024, due to extended regulatory review processes in Italy and Egypt. 

While the decision marks a change in course, both parties have reaffirmed their long-term strategic priorities.

The deal aimed to establish a new Mediterranean-focused oil and gas platform, backed by Carlyle and led by former BP CEO Tony Hayward, leveraging Energean’s assets in Egypt, Italy, and Croatia. Despite strong alignment on commercial terms, the timeline for securing approvals in key jurisdictions ultimately led to the decision not to proceed before the March 20 longstop date.

Energean CEO Mathios Rigas acknowledged the outcome but emphasised that it does not alter the company’s growth trajectory or shareholder return strategy. “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,” Rigas said.

Energean, which operates across eight countries in the Mediterranean and UK North Sea, recently reported higher annual profits, while also noting a $241m impairment charge related to operations in Egypt, Morocco, and Greece. The company has reiterated that it is not seeking alternative buyers for the assets involved in the proposed deal.

For Carlyle, the decision reflects the complexity of executing cross-border transactions in highly regulated sectors, particularly in energy. The firm continues to maintain an active presence in global energy and infrastructure markets and may revisit its Mediterranean strategy in future under more favourable regulatory conditions.

The mutual decision to conclude the transaction demonstrates the adaptability of both parties in a dynamic investment environment, while reaffirming private equity’s continued focus on long-term, value-driven partnerships in the energy space.