Italgas to Acquire Distribution Rival 2i Rete Gas for $2.26B

Gas distribution giant Italgas SPA is acquiring its competitor 2i Rete Gas S.p.A. from F2i SGR S.p.A. and Finavias S.à r.l.

2i Rete Gas is the second-largest gas distribution operator in Italy, present across most of the country, serving 4.9 million customers.

The transaction is valued at $2.26 billion (EUR 2.06 billion), Italgas said in a news release. The net financial debt and other net liabilities as of December 31, 2023, amount to $3.56 billion (EUR 3.246 billion).

The closing of the transaction is expected within the first half of 2025, subject to the necessary regulatory approvals.

Italgas CEO Paolo Gallo said, “With this transaction, Italgas Group marks a historic milestone in its long and prestigious history. The acquisition of 2i Rete Gas allows us to become the leading operator in Europe in the gas distribution sector, after being recognized as a global benchmark in terms of innovation and digitalization”.

“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. This will create value for our shareholders and all our stakeholders. We look forward with confidence to the next steps of the transaction to complete this significant project, in line with our strategic vision and the needs of the country within the framework of European goals,” Gallo continued.

Six-Year Investment Plan

Meanwhile, Italgas is allotting $17.09 billion (EUR 15.6 billion) in investments for the next six years, it said in a separate statement.

The figure is an increase of 92 percent over the previous plan, according to the statement. The investments are earmarked for the acquisition of 2i Rete Gas, interventions for the development of gas distribution in Italy and Greece, strengthening the presence in the water sector, and accelerating the growth in energy efficiency, with a strong commitment to achieving EU climate targets.

Italgas emphasizes its commitment to consolidating the gas distribution sector in Italy with the aim of multiplying synergies to ensure significant benefits for families and businesses in terms of safety, efficiency, service quality, decarbonization of end uses, and costs. The use of artificial intelligence across all its activities will also enable a new phase of digital transformation, accelerating the ecological transition.

The company also targets investing in the widespread application of artificial intelligence (AI) across gas, water, energy efficiency and information technology, which is expected to drive double-digit net income growth throughout the plan period.

Gallo stated, “The Strategic Plan 2024-2030 will go down in Italgas’ history as the blueprint for creating the European champion in gas distribution, further reinforcing our commitment to the digital transformation of infrastructure, benefiting the entire country”.

“An investment of €15.6 billion will provide a strong boost to our growth trajectory, with the largest share once again allocated to the development, digitization, and repurposing of the gas distribution network in both Italy and Greece. Our commitment to the widespread use of Artificial Intelligence will enable us to enter a new phase of digital transformation,” Gallo continued.

“The figures in this Plan, with an average annual growth of 13 percent in EBITDA and net profit by 2030, demonstrate how the extraordinary capabilities of the women and men of Italgas and 2i Rete Gas can create value for shareholders and all stakeholders, leveraging efficiency, innovation, and sustainability,” he added.

To contact the author, email rocky.teodoro@rigzone.com