Italgas acquires 2i Rete Gas: a historic step towards becoming the leading European operator

Italgas has reached an agreement with F2i and Finavias to acquire 100% of 2i Rete Gas. The OK for the deal was announced by the group led by Paolo Gallo in a note announcing the signing of the contract to take over the main competitor in gas distribution, present in the peninsula with 4.9 million customers. The consideration paid for the deal, including debt, is just over EUR 5.2 billion for an equity value of EUR 2 billion. The deal is expected to close within the first half of 2025.

"With this transaction," commented Gallo, "the Italgas group marks a historic milestone in its long and prestigious history. The acquisition of 2i Rete Gas allows us to become the leading European operator in the gas distribution sector, after being recognised as a global benchmark in terms of innovation and digitalisation". In a press release issued on Saturday evening, 5 October, Gallo went on to explain that, as the 'leading operator in Italy and Greece', Italgas, downstream of this transaction, 'reinforces its commitment to achieving decarbonisation goals, with resilient infrastructure and a sustainable cost of energy'.

The next step, once the acquisition is finalised, will be, the CEO clarified, 'the extension to the entire network of our digital applications and the adoption of advanced technologies such as artificial intelligence, which will allow us to monitor and manage our infrastructures in real time, improving operational efficiency and increasing security and reliability: we will thus create value for our shareholders and all our stakeholders. We look forward to the next steps of the operation to bring this major project to fruition, in line with our strategic vision and the country's needs within the framework of European objectives'.

In 2023, 2i Rete Gas reported adjusted revenue of EUR 815.0 million, adjusted EBITDA of EUR 546.3 million, adjusted EBIT of EUR 317.7 million and adjusted net profit of EUR 181.3 million. In 2023, investments amounted to EUR 372.2 million.

Italgas will meet the related financing requirements through a bridge loan, initially underwritten by Jp Morgan and syndicated to a pool of lending banks comprising Banco BPM, BofA Securities, Citi, J.P. Morgan, Morgan Stanley and Société Générale, which will also be refinanced through a 1 billion euro rights issue, with the aim of maintaining the current rating profile. Jp Morgan is acting as financial advisor in the context of the transaction, Legance -Avvocati Associati as legal advisor, the firm Foglia&Partners for the tax aspects. Jp Morgan, BofA Securities, and Jefferies issued a fairness opinion to the Italgas board of directors in the context of the transaction..