EDP Hives off Gas Networks

Portuguese power and gas utility EDP said April 24 it had signed a definitive agreement to divest its wholly-owned gas distribution business in Spain, Naturgas Energia Distribucion.

It is selling to an investor consortium comprising JP Morgan Asset Management, the Abu Dhabi Investment Council, and Swiss Life Asset Managers; the €2.59bn deal was announced late March. EDP said April 24 it is expected to be completed by the end of 2Q17 or early 3Q17. EDP will remain active in gas marketing in both Spain and Portugal.

EDP announced the sale of its Portuguese gas distribution business, EDP Gas, two weeks ago for €532.4mn to Portugal’s gas grid operator REN. This also shows that EDP is focusing on supply and generation, and no longer on networks.

Mark Smedley