Spanish natural gas transportation company Enagas SA (MCE:ENG) said it had agreed to take a 90% stake in sector firm Naturgas Energia Transporte SAU from Portuguese electric utility Energias de Portugal SA (ELI:EDP), or EDP, for EUR241m (USD291.5m).
Following the transaction, which is pending regulatory clearance, the Basque government will hold the remaining 10% of Naturgas through the Basque regional energy board (EVE). The move is in line with the 3rd EU Gas Directive, according to which vertically integrated energy operators need to separate their transmission activities from the remaining businesses.
The acquisition will allow Enagas to consolidate its position as the only transmission firm in the Spanish gas transmission trunk network, it said. In addition, the buyer will beef up its presence in the Basque county.
By taking control of this firm, Enagas will end up acquiring 450 km (279.6 miles) of high-pressure gas pipelines and the international Irun connection. The company intends to set up a new compressor station, thus boosting the capacity of the connection that heads from France into Spain to 2.1bn cu m (74.16bn cu ft) from the current 200m cu m. Furthermore, it plans to establish a 54 km gas pipeline between Bilbao and Treto.
Banco Bilbao Vizcaya Argentaria SA (MCE:BBVA), Bird & Bird LLP, Garrigues and PWC are providing advice to Enagas with regard to the transaction.