E.ON Moves Closer to Sale of Open Grid Europe

E.ON AG is reportedly closer to the sale of natural gas transmission unit known as Open Grid Europe.

The potential sale of Open Grid Europe which operates a 12,000 kilometers network of pipelines predominantly in Germany, was first reported in August of this year.

The planned sale is part of a broader disposal program that E.ON is undertaking to reduce debt and for reinvestment in emerging markets in a move to reduce dependence on European countries.

German newspaper Sueddeutsche Zeitung reported that Allianz Capital Partners has expressed an interest in the assets. The private equity arm of insurer Allianz acquired stakes in Norwegian gas transportation infrastructure, assets similar to the pipelines put on the block by E.ON.  Bidders are reportedly to reflect their interest by the end of January.

Earlier this year, RWE AG, sold its gas transmission grid unit Thyssengas GmbH to infrastructure funds for around EUR500 million. Thyssengas transports almost 10 billion cubic meters of natural gas annually through a 4,100-kilometer pipeline network.