Italy Signs Deal to Sell Energy Grid Stake to Chinese Company

The Italian Government signed a deal to sell a minority stake in its energy grid holding company to China’s State Grid Corp for a cash consideration of around €2.1 billion. 

Cassa Depositi e Prestiti (CDP), bank controlled by the Italian Ministry of Economy and Finance, approved the sale of a 35% stake in CDP Reti to the Chinese Company. CDP will retain the remaining 65% of CDP Reti. 

'The value of the transfer totals around €2.1 billion… It is the most important Chinese investment in Italy and one of the most important in Europe,’ reads note released by the Italian government on Thursday

CDP Reti owns a 30% stake in Snam. According to a the document, CDP will transfer to CDP Reti an additional 30% stake in Snam currently held by Terna.

The sale is part of Italy’s efforts to reduce public debt, while attracting foreign investors and promoting infrastructure projects. 

Meanwhile, Enel approved the reorganisation of Group operations to increase efficiency of operations in Iberia and Latin America. Italian government did indeed commit to decreasing the public debt through a round of privatisation and liberalisations, while betting on organisational changes to promote Italian companies abroad.