Italy (Business Emerge), September 6: Italgas, Europe’s largest gas distributor, is reportedly planning a capital increase of approximately €1 billion ($1.11 billion) to fund the acquisition of its major domestic competitor, 2i Rete Gas. This strategic move, aimed at enhancing Italgas’ dominance in the Italian gas distribution market, is expected to further consolidate its market position. According to insiders familiar with the deal, the capital hike is integral to the acquisition strategy.
A final offer for the acquisition is anticipated to be presented in the coming weeks. Industry analysts are closely monitoring the valuation of 2i Rete Gas’ regulatory asset base (RAB), which amounts to €4.9 billion. This figure represents the network’s investment value, a crucial metric for businesses operating in a regulated market.
State Support in Favor of Acquisition
Cdp Reti, part of state lender CDP which holds a 26% stake in Italgas, has shown its full support for the acquisition. Cdp Reti has already committed to backing the capital increase, reflecting its confidence in the potential benefits of this deal. It is also considering various ways to assist in the successful execution of the transaction.
Meanwhile, F2i, an Italian infrastructure fund, currently holds a controlling stake of 64% in 2i Rete Gas. Dutch pension fund APG and private equity firm Ardian collectively own the remaining 36.1% via their joint vehicle, Finavias.
Gas Distribution Market Set for Significant Consolidation
The proposed acquisition is set to reshape the gas distribution landscape in Italy. With Italgas already holding a 35% market share, the addition of 2i Rete Gas, which controls 20% of the market, would cement Italgas’ dominance. This merger would mark a significant milestone in the consolidation of Italy’s gas sector, positioning Italgas as the clear leader.