Benzinga - by Neil Dennis, Benzinga Staff Writer.
International oil group BP plc (NYSE:BP) and the Abu Dhabi National Oil Company have suspended talks in their joint bid to buy a stake in Israeli gas company NewMed Energy.
U.K.-based BP and the United Arab Emirates state-owned ADNOC were negotiating the $2 billion purchase of a 50% stake in the Israeli oil and gas exploration and production company.
According to a statement by NewMed: “The Committee and Consortium have agreed, due to the uncertainty created by the external environment, to suspend discussions in relation to the proposed transaction.”
NewMed added that the process would remain suspended until discussions either resume or are terminated.
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BP spokesperson David Nicholas declined to comment.
The deal was announced in March 2023 and was seen as an important step in the “normalization” of diplomatic relations between Israel and the UAE. The talks, however, appear to have become strained as Israel’s response to Hamas’ Oct. 7 attack has further soured Arab-Israeli tensions.
The Israel-Hamas war and its wider influence have also made trading conditions for Western companies operating around the Middle East extremely tough.
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Meanwhile, Starbucks Corporation (NASADAQ: SBUX) reported last week that its Middle Eastern franchisee, Kuwait-based Alshaya Group, had sacked 2,000 employees across the region as boycotts of Western companies caused “difficult trading conditions.”
The company said in January it was seeing a "significant impact on traffic and sales" in the Middle East as citizens boycotted the company due to its alleged support for Israel.
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