Italian Antitrust Reviewing CDP Take Stake in Snam

The Italian antitrust regulator will investigate the potential sale of a stake in Snam to Cassa Depositi e Prestiti (CDP).

The possible sale, which was announced last week by the Italian government, would see the Italian state-run financing agency take a 25.1 per cent stake in Snam. The government says the sale will help to stabilise the gas distribution network.

However, today Italian newspaper Il Sole Ore 24 reports that the transaction will be investigated to ensure competition remains in the market.

Competition is the main reason for the sale of the Snam stake, which is currently held by partially state-owned Eni. At present, Eni holds a 52.5 per cent stake in Snam. The sale is intended to liberalise the gas market in Italy, separating the sale, production and distribution of gas in the country.

Il Sole Ore 24 reports that the investigation comes in response to a current stake already held in Snam by CDP. If it were to take the additional 25.1 per cent stake in the company, and if Snam subsidiary Italgas was included in the sale, CDP would then hold a more than 50 per cent stake in the gas market.

This is in addition to a 29.9 per cent stake in energy company Terna.

Il Sole reports that no formal assessment has yet been initiated but that the antitrust authority has informed the Italian government of the potential effect on competition in the market.