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Repsol Explores Upstream Merger with APA Corp, Eyeing Expansion and IPO
14 Nov
Summary
- Repsol in preliminary talks with APA Corp for upstream division merger
- Potential move could expand Repsol's upstream operations and enable IPO
- Shares of APA rose 7.3% following reports of the discussions
As of November 14th, 2025, Spanish energy company Repsol is reportedly exploring the possibility of a reverse merger involving its upstream division. The company is in preliminary talks with several potential partners, including US-based APA Corp, previously known as Apache Corp.
According to sources familiar with the matter, initial discussions have taken place between Repsol and APA. The company has also approached other possible partners for a similar transaction. Such a move could expand Repsol's upstream operations and provide a more expedient path to a public offering, which the company's executives have previously indicated they are preparing for, with a target of 2026.
Following the reports of the ongoing talks, shares in APA increased by as much as 7.3% in New York. Over the past year, the stock has risen by around 16%, valuing APA at approximately $9 billion. Meanwhile, Repsol's shares also climbed by 2.2%.
The news comes as Repsol agreed to sell a 25% stake in its upstream unit to EIG Global Energy Partners, a private equity firm, in 2022. That transaction valued the division at $19 billion, including debt, and was intended to support further expansion in the US while generating capital for investments in low-carbon initiatives.
