Italy's Snam to boost green hydrogen with 33% stake in De Nora (updated)
19/11/2020 09:15
(Recasts, adds detail)
MILAN, Nov 19 (Reuters) - Italian gas group Snam SRG.MI
said on Thursday it had agreed to buy a 33% stake in Industrie
De Nora from Blackstone in a deal valuing the clean energy
company at around 1.2 billion euros ($1.4 billion) including
debt.
Snam said the De Nora stake deal, which it expects to
complete in the first quarter, will strengthen its position in
green hydrogen technologies.
Last year Snam, which makes most of its revenue from gas
transport in Italy, set up a hydrogen unit as part of its plans
to position for the transition to cleaner energy with a pledge
to spend more on new green business lines.
"The partnership with De Nora will allow us to be a leader
in the development of green hydrogen, which is becoming a key
feature of the decarbonisation agenda," Snam CEO Marco Alvera
said in a statement.
Founded in 1923 in Milan, De Nora is a leading manufacturer
of electrodes that can be used in the production of so-called
green hydrogen production, which is produced from renewable
energy sources using devices called electrolysers.
The electrode business accounts for 60% of De Nora's
revenue, which total more than 500 million euros.
De Nora, which also holds 34% of a joint venture with
Germany's ThyssenKrupp TKAG.DE involved in several large
global hydrogen projects, is expected to post a 2020 core profit
of 90 million euros.
Snam said De Nora, which also operates in the water
treatment sector, was ideally positioned to be a global
technology-based listed company.
It said the asset would fit into its plans to set up a new
investment platform next year to meet growing interest in clean
energy and decarbonisation.
The platform will grow Snam's exposure to companies and
projects relevant to decarbonisation, it said.
Blackstone invested in De Nora in 2017 and expanded the
company in China. De Nora's manufacturing plants are spread
across 12 sites in Germany, Italy, the United States, Brazil,
Japan, China and India.
The U.S. investment firm, which held the stake through funds
managed by Blackstone Tactical Opportunities, was advised by
Lazard while Snam was advised by BofA Merrill Lynch.
($1 = 0.8445 euros)
(Reporting by Stephen Jewkes; Editing by Agnieszka Flak and
Alexander Smith)
((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters
Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))