Snam (SRG.MI), Italy’s gas grid operator, has voiced concerns regarding the extended approval process for its acquisition of a stake in Germany’s Open Grid Europe (OGE), the largest independent gas transmission operator in Germany. Snam, which operates in the transportation, dispatching, compression, and storage of natural gas, signed an agreement in April to purchase a 24.99% stake in OGE, a move designed to facilitate Snam’s entry into the German gas market.
Agostino Scornajenchi, Snam’s CEO, expressed surprise at the drawn-out nature of the process, citing the extensive documentation requested by German authorities. “The transaction is proceeding… but we are amazed by the lengthiness of the process due to the incredible amount of additional documents requested by the German authority,” Scornajenchi told the newspaper Il Sole 24 Ore. He indicated that Snam may reconsider the acquisition if the demands become too burdensome.
The German authority’s information requests included inquiries into the role of China’s State Grid, which holds an indirect investment in Snam. Specifically, China’s State Grid owns a 35% stake in CDP Reti, which in turn controls 31.4% of Snam. The German economy ministry has declined to comment on the ongoing review of Snam’s acquisition.
Scornajenchi emphasised the attractiveness of the asset but cautioned that Snam would not pursue the acquisition “come hell or high water.” This statement underscores the company’s growing unease with the regulatory hurdles it faces in Germany. In 2018, Germany blocked an attempt by China’s State Grid to acquire a stake in power grid operator 50Hertz, indicating a precedent for scrutiny of Chinese investments in critical infrastructure.
