Italy’s Antitrust Watchdog Clears Italgas-2i Rete Gas Deal with Remedies

Italy’s competition authority has granted conditional approval for Italgas’ acquisition of domestic rival 2i Rete Gas, marking a pivotal moment in the country’s gas distribution sector. The green light from the antitrust body, announced on Tuesday, paves the way for Italgas, Europe’s largest gas distributor, to proceed with its 5.3 billion-euro ($5.8 billion) transaction, first agreed upon in October.

Per Reuters, the antitrust regulator has mandated several corrective measures to ensure fair competition within the industry. Among these conditions, Italgas must divest a portion of its gas distribution business, amounting to 600,000 customers. This step is necessary to prevent excessive market concentration, given that the combined entity with 2i Rete Gas would serve approximately 12.3 million customers across Italy. The disposal must be finalized by the end of October 2025.

According to Reuters, multiple Italian gas companies, including Ascopiave, have already expressed interest in acquiring the customers that Italgas will be required to offload. This suggests that the regulatory-imposed sale could lead to a competitive bidding process among industry players.

Despite the imposed conditions, Italgas remains on track to finalize the acquisition swiftly. “Italgas will proceed with the closing of the transaction by the end of the first quarter,” the company confirmed in a separate statement. Following the closure, the group led by CEO Paolo Gallo will begin the integration process in the second quarter, ahead of initial projections.

Per a statement in LinkedIn, the integration will focus on several strategic initiatives, including merging corporate and information systems, advancing the digitalization of the network, and implementing artificial intelligence-based solutions. These efforts align with Italgas’ broader 2024-2030 strategic plan, which envisions investments totaling 15.6 billion euros.

Source: Reuters