PORTUGAL Trends and Developments Contributed by: Martim Morgado and Joana Geada dos Santos, CS’Associados
grated with battery energy storage systems (BESS) as a primary focus within the current investment pipeline. In July 2025, the Portuguese government announced its intention to launch a competitive tender for up to 750 MVA of battery energy storage capacity, as part of a broader EUR400 million package aimed at strength - ening grid resilience and system security. In March 2026, a battery energy storage capacity tender was launched, with a total funding of EUR80.25 million. In 2026, the ongoing growth of data centres – espe - cially large-scale and AI-focused ones – is anticipated to be a major factor influencing Portugal’s electricity system. Industrial sectors Logistics, manufacturing and value-added industrial activities also gained relevance, as companies sought to strengthen supply chains and expand internation - ally. Traditional sectors linked to natural resources are also undergoing transformation, creating additional opportunities for strategic investment and consolida - tion. Examples include the sale of Secil, one of the leading Portuguese companies in the cement sector, to Spanish company Cementos Molins for EUR1.4 billion, and the sale of Frulact, a company in the pro - cessed and packaged food sector, to Nexture for EUR600 million. Banking and finance One of the most notable events of 2025 was the sale of Novo Banco, owned by US fund Lone Star and the Portuguese Resolution Fund, to French group BPCE, for EUR6.4 billion. From a project finance perspective, 2025 was also marked by relevant projects for the country. In July 2025, the concession contract was signed for the construction and maintenance of the first section (Porto-Oiã) of the high-speed railway line connecting Lisbon and Porto, the two most important cities in the country, in approximately 1 hour and 15 minutes. This contract is part of the first phase of the project, which has a term of 30 years, and construction is expected to take place between 2026 and 2030.
The concession was awarded to the company Avan Norte – Gestão da Ferrovia de Alta Velocidade, estab - lished by the LusoLAV consortium, with the European Investment Bank having contracted a financing of EUR875 million with the company for the construc - tion of the first section. This financing constitutes the first tranche of a total package of EUR3 billion, which was approved in 2024 to fund the implementation of the entire infrastructure. Deal Trends Increased complexity and preparation Transactions in 2025 generally required more prep - aration and more sophisticated structuring than in previous years. Greater volatility and uncertainty led investors to adopt more rigorous risk assessment pro - cesses and to devote additional time to due diligence. Valuation gaps between buyers and sellers frequently required the use of more flexible pricing mechanisms, including earn-outs and deferred consideration struc - tures. At the same time, early identification and alloca - tion of risks became increasingly critical to successful deal execution. Regulatory complexity also continued to influence transaction timelines. In certain sectors (including infrastructure, energy, financial services and telecom - munications), licensing requirements, merger control and foreign investment screening mechanisms may have a material impact on deal timing and feasibility. Corporate governance, transparency and ESG con - siderations are becoming increasingly central to M&A decision-making. Investors are paying closer attention to compliance frameworks, sustainability practices and long-term risk management. W&I insurance In 2025, W&I underwent a degree of commoditisation, increasingly operating as an insurance-backed solu - tion for warranties addressing unknown risks, particu - larly in competitive deal environments. At the same time, the market witnessed a diversifica - tion and growing use of tailored indemnity insurance products designed to cover known contingencies. These solutions have been used primarily in tax-relat -
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