Italgas acquires 2i Rete Gas and announces €15.6bn investments to 2030

Italian gas distributor Italgas has announced it will acquire 2i Rete Gas as part of a €15.6 billion ($17 billion) investment in its operations up to 2030.

2i Rete Gas, headquartered in Milan, is Italy’s second-largest gas distribution company, with 4.9 million customers in over 2,200 municipalities across most of the country.

The equity value of the offer is €2.06 billion, with net financial debt and other liabilities as of 31 December 2023 of €3.25 billion.

Subject to the necessary approvals, the transaction is expected to close in the first half of 2025.

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Commenting, Italgas CEO Paolo Gallo said that the acquisition marks a historic milestone in the Italgas group’s history.

“The acquisition of 2i Rete Gas allows us to become the leading European operator in the gas distribution sector.”

The €15.6 billion in investments announced for the next period is an increase of €7.5 billion – almost double – over the previous plan period to cover the 2i Rete Gas acquisition as well as investments in digitalisation and in the group’s gas and water infrastructures in Italy and Greece.

Broken down €12.8 billion is earmarked for the gas distribution network in Italy and €1 billion for the gas distribution network in Greece, €450 million for digitalisation and other efficiency improvements in the water networks and €300 million for energy efficiency through the group’s esco Geoside.

Gas network plans include full digitalisation and automation with widespread use of AI, with over 100 AI use cases reported to have been identified with the group, and the large-scale rollout of the in-house developed Nimbus hydrogen-ready smart gas meters in the two countries.

The 2i Rete Gas acquisition will bring Italgas’ customer base to 12.9 million in Italy and Greece.

“The group’s new dimension combined with innovation and digital transformation is the determining factor in ensuring the achievement of energy transition targets, security of supply and sustainability of energy costs for people and businesses,” continued Gallo.

“The investments will give a further, strong boost to the growth path: the most significant share is once again allocated to the development, digitalisation and repurposing of the gas distribution network in both Italy and Greece.

“The commitment to widespread use of AI will allow us to enter a new season of digital transformation. Digital transformation remains the main strategic lever also to strengthen our activities in the water sector and in the energy efficiency sector.”