Snam considers Italgas spin-off

• 8 years ago (2016-03-18)

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However in January, it was rumoured that state lender Cassa Depositi e Prestiti (CDP),  which controls Snam, was looking into possibilities of merging Italgas with rival 2i Rete Gas, to create joint assets of more than €8 billion. At present, Italy’s gas distribution sector is highly fragmented, with more than 200 companies working across 7000 concession areas serving more than 20 million customers. By spinning off Italgas, it may be in a position to act as a pure distribution player.

With Italgas valued at €7.3 billion, such a reduction of Snam’s distribution commitments could enable it to further increase its presence in gas transmission – an area in which it has already poured half of its revenue so far.

"Separation could have strong strategic value and benefits," Malacarne also said.