Italy’s two largest gas distributors announce merger

Italy’s two largest gas distribution companies, Italgas and 2I Rete Gas, have agreed a merger that could create Europe’s largest downstream gas offtaker with a combined 13 million end-users, Italgas said Oct. 5.

Shareholders from F2i SGR and Finavias agreed to the buyout from Milan-based Italgas after five months of negotiations for Eur5.3 billion ($5.8 billion) in total.

The deal should be completed in the first half of 2025, pending regulatory approvals.

Italgas is Italy’s largest gas distribution company with 8 million customers while 2i Rete Gas has 4.9 million customers.

“The acquisition of 2i Rete Gas allows us to become the leading operator in Europe in the gas distribution sector,” Italgas CEO Paolo Gallo said.

“As the leading operator in Italy and Greece, Italgas -- through this transaction -- reinforces its commitment to achieving decarbonization goals, with resilient infrastructure and sustainable energy costs. Extending our digital applications across the entire network and adopting advanced technologies such as artificial intelligence will enable us to monitor and manage our infrastructure in real-time, improving operational efficiency while increasing safety and reliability," Gallo said.

Italgas announced Oct. 7 that it would invest Eur15.6 billion in an updated strategic plan through to 2030, which was approved by its board.

The investment is a hike of 92% from its previous plan, including investment in a new digital command center in Florence.

Italian gas for Cal 2025 delivery at the Italian PSV hub was assessed by Platts, part of S&P Global Commodity Insights, at Eur41.290/MWh on Oct. 4 up Eur0.275 on the day.