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EM&E Pulls Out of Indra Merger After SEPI Blocks Deal Over Conflict of Interest

SEPI pressed for chairman Ángel Escribano’s exit to resolve a conflict created by his dual role.

Overview

  • Spain’s state holding SEPI formally halted further study of the Indra–EM&E integration until the conflict tied to chairman Ángel Escribano is resolved, according to a letter signed by SEPI chief Belén Gualda.
  • EM&E notified the CNMV that the conditions for a potential transaction do not exist and withdrew from the process, after which Indra’s board ended its analysis of the operation.
  • Ángel Escribano offered to freeze the merger in a bid to remain as chairman, as reported ahead of the board’s extraordinary meeting.
  • Prime Minister Pedro Sánchez said SEPI is working with Indra to address the conflict issue, and Finance Minister María Jesús Montero underscored the requirement for decisions free of conflicts at a strategic company.
  • Indra shares fell sharply over recent sessions, with coverage estimating about €1.3 billion in lost market value, as investor blocs split with Amber and Third Point backing the deal and Sapa aligning with SEPI.