EC Clears Snam Takeover of Desfa

The takeover of Greek gas grid operator Desfa by a consortium led by Italy's Snam, announced in April, has been approved by the European Commission, the latter announced July 16. It concluded that the deal raises no competition concerns. 

The consortium led by Snam (60%), partnered by Spain's Enagas and Belgium's Fluxys (each with 20%), secured the 66% Desfa stake with a bid of €535mn ($662mn); the Greek state will retain the other 34%.  

Five years ago the commission blocked a €400mn winning bid by Azeri state Socar for the 66% Desfa stake on competition grounds, insisting that Socar surrender at least 17% equity to a European firm. After declining to team up with a western European gas grid operator, Socar finally withdrew its bid in 2016 after Desfa tariffs were reduced by the Greek government without any reduction allowed to its €400mn bid. Socar is an integrated gas producer, marketer and pipeline operator, but European Union competition law demands the separation of energy transport from energy supply and trade activities.

A re-tendering of the 66% stake led to six bid consortia being shortlisted, eventually whittled down to two last year -  including the Snam group.

(The banner photo shows the LNG import terminal, owned by Desfa - courtesy of that company)