(Bloomberg) -- Italy’s Italgas SpA agreed to buy rival 2i Rete Gas in a deal that would transform it into Europe’s biggest gas distribution network operator.
Italgas signed a deal to buy shares in 2i Rete Gas held by shareholders F2i SGR SpA and Finavias, according to a statement Saturday. The transaction includes a consideration of €2.06 billion, while the net financial debt and liabilities amounted to about €3.25 billion.
The purchase is expected to close in the first half of 2025, pending regulatory approval. Italgas, the leading gas operator in Italy and Greece, will fund the transaction through bridge financing underwritten by JPMorgan, the company said in its statement. The loan will be syndicated to banks and will also be refinanced through a rights issue amounting to €1 billion.
Bloomberg News reported Friday that Italgas was near an agreement for 2i Rete Gas, the second-largest gas distribution operator in Italy. Following the acquisition, the biggest ever for the company, Italgas would control a 155,000 kilometer-long network in Europe and give the company control of more than 50% of the Italian market, according to Bloomberg Intelligence.
JPMorgan was the financial advisor for the transaction. JPMorgan, BofA Securities and Jefferies also provided a fairness opinion to Italgas’s board.
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