Gas Natural Fenosa reached an agreement today with 2i Rete Gas and Edison on the sale of its distribution companies and assets in Italy

  • The gas distribution operator 2i Rete Gas is acquiring the group distribution company in Italy, Nedgia, as well as Gas Natural Italia, the company that groups all of GAS NATURAL FENOSA’S corporate activities, for 727 million euros. 
  • For its part, Edison is buying the gas and electricity marketing company, Gas Natural Vendita, and the natural gas supply contract associated with the company’s operations, for 293 million euros.

GAS NATURAL FENOSA closed the sale of its companies and assets in Italy today in separate agreements with the companies 2i Rete Gas S.p.A. and Edison S.p.A. for a total amount of 1.02 billion euros.

The closing of operations, which is anticipated to take place between December 2017 and March 2018, is subject to the corresponding approval by the competition authorities.

In line with the agreements, 2i Rete Gas is acquiring 100% of Nedgia S.p.A., the natural gas distribution company for the group in Italy, and is also buying Gas Natural Italia S.p.A., the company that groups all of GAS NATURAL FENOSA’S corporate activities in that country.

Also, in a separate agreement, Edison is acquiring 100% of Gas Natural Vendita Italia S.p.A., the gas and electricity marketing company for GAS NATURAL FENOSA in Italy, as well as the gas supply contract of 11 TWh/year, starting in 2020.

After the operation closes, Gas Natural Italia will continue to provide corporate services to Nedgia as well as Gas Natural Vendita.

GAS NATURAL FENOSA, after conducting a review of its businesses and its position in Italy, and taking into account the new legal framework relevant to obtaining the distribution authorisations for Italy, has decided to leave the Italian market and sell its companies in Italy, which has led to today’s agreement. The operation allows the group to optimise its business portfolio in areas considered to be non-strategic, increasing value for shareholders.

Nedgia, with headquarters in Acquaviva delle Fonti (Bari), is the seventh-largest company in the Italian gas distribution market and operates in 223 municipalities in 8 regions in Southern Italy (Abruzzo, Basilicata, Calabria, Campania, Lazio, Molise, Puglia and Sicily), in addition to 26 other developing municipalities in the region of Cilento (Compania). Currently Nedgia has 459,000 distribution points providing services to end customers via a distribution network of 7,300 kilometres.

Gas Natural Vendita Italia (GNVI), with headquarters in San Donato Milanese sells and markets electricity and natural gas in Italy. In 2016, GNVI had approximately 420,000 residential and 14,000 industrial customers and sold around 3 TWh of gas. The majority of its customers are located in the central and southern regions of Italy. Additionally, GNVI markets electricity to approx. 50,000 retail and industrial customers.

About 2i Rete Gas

2i Rete Gas is the second-largest gas distribution operator in the Italian market with a market share of 17% in terms of supply points. The group manages a network of more than 58,000 kilometres of medium- and low-voltage power lines and has a concession to distribute natural gas throughout the territory of Italy. In 2016, 2i Rete Gas distributed around 5.5 billion cubic metres of natural gas and provided gas services to 2,000 municipalities, representing 3.9 million end users. The group generated a profit of more than 930 million euros and an EBITDA of 400 million euros in 2016.

About Edison

Edison is the leading company in Italy and Europe in the production and sale of electricity, in energy and environmental services, through its subsidiary Fenice, and in the exploration and production of hydrocarbons. Founded 130 years ago, Edison has contributed to the electrification and development of Italy. Currently, it operates in Europe and the Mediterranean area, where it employs 5,000 people. In the power generation sector, it has an installed capacity of 6.5 GW.

About Gas Natural Fenosa

GAS NATURAL FENOSA is a multinational leading company in the energy sector, a pioneer in gas and electricity integration, and operates in over 30 countries. The group provides services to nearly 22 million customers on five continents and has an installed power generation capacity of 15.5 GW and a diversified mix of technologies.