Italy's Ascopiave seeks to expand via M&A in gas distribution

Hera SpA

26/09/2024 12:50

By Giancarlo Navach
       MILAN, Sept 26 (Reuters) - Italian regional utility
Ascopiave  ASCI.MI  is aiming to grow further in the gas
distribution market and is ready to bid for  assets that Italgas
 IG.MI , Europe's biggest gas distributor,  may be forced to
sell on antitrust grounds if its acquisition of main domestic
rival 2i Rete Gas goes through.
    For now, Ascopiave, which is based in north-east Italy, has
entered into exclusive negotiations with fellow utility A2A
 A2.MI  to take over assets in gas. It will finance the deal
with the sale of the remaining 25 percent of its Estenergy joint
venture with Hera  HRA.MI .
    "Our policy is to continue to invest in gas distribution and
we have entered in an exclusive agreement with A2A for the
acquisition of 490,000 gas distribution points located in areas
between Brescia, Bergamo, Pavia, and Cremona," Chairman and CEO
Nicola Cecconato told Reuters.
    To finance the acquisition of these assets, Ascopiave will
exercise the put option in favour of Hera  HRA.MI  on the last
25 percent still held in Estenergy and the 3 percent in Hera
Comm.
    "The moment we are certain that the transaction with A2A
will go through, we will exercise the put option to finance most
of the operation, thus sanctioning the exit from the gas and
power sales sector," Cecconato added.
    Those two operations could raise a total of around 300
million euros.
    Consistent with its growth strategy in the gas distribution
sector, Ascopiave is looking closely at the planned merger deal
between Italgas and 2i Rete Gas.
    According to press reports, a binding offer from Italgas is
expected in the coming weeks. Should the deal go through, the
merger will lead to the creation of a group with a market share
of around 55 percent in Italian gas distribution. 
    The size of the deal is likely to trigger remedies imposed
by the Antitrust Authority, which could result in Italgas
divesting some assets. Hence the potential interest of Ascopiave
in taking over these assets, particularly the local ones.
    "We do not exclude that if there will remedies to be taken
in the Italgas-2i Rete Gas deal, we could also consider taking
them over if they interest us. We are thinking of assets located
in areas close to where we are," Cecconnato said.

 (Reporting by Giancarlo Navach
Editing by Keith Weir)
 ((giancarlo.navach@thomsonreuters.com; +39 06 8030 7735;))