Renta 4 | According to information published in the press, Repsol (REP) has agreed to acquire 70% of On Demand Facilities S.L. (ODF Energía), an electricity and gas marketing company, for a price of around €21 million.ODF Energía, which has a portfolio of around 22,000 business customers (>1% of Repsol’s portfolio), bases its value proposition on a flexible business model that is close to the channel, with a strong focus on loyalty as a way to consolidate its customer base. It will retain its identity, management team and organisation.
Assessment: This is positive news that will enable Repsol to strengthen its presence in the business segment and continue to gain weight in the gas and electricity marketing business, where it has around 2.7 million customers in Spain and Portugal.
Since the acquisition of Viesgo’s assets in 2018 and its entry into the electricity business, Repsol has been increasing its customer base, both organically and inorganically (CHC Energía, Gana Energía, Capital Energy).
No impact on share price.
Recommendation: Overweight and target price of €15.10 per share.
