Italian gas grid operator Snam has scrapped plans to acquire a minority stake in Germany's largest independent gas transmission firm, amid resistance from the German economy ministry.
Berlin's concerns over the €920M ($1.1B) transaction stem from the presence of 
State Grid as an indirect investor in Snam — state-owned State Grid Corp of China holds 35% of Cassa Depositi e Prestiti SpA, an investment vehicle owning almost a third of Italy's Snam.
The Italian group signed a deal in April to buy a 24.99% stake in Open Grid Europe's (OGE) owner Vier Gas Holding from Abu Dhabi's Infinity Investments, aiming to enter the German gas market, the biggest in Europe.
The agreement was terminated after a prolonged foreign direct investment review by Germany, after Snam’s proposed remedies to secure regulatory clearance were found inadequate by the authorities.
Germany's economy ministry had been reviewing the deal since it was agreed. Its resistance reflects European governments taking a tougher stance against Chinese investment in Europe due to security concerns.
reuters.com/business/energ
bloomberg.com/news/newslette
State Grid as an indirect investor in Snam — state-owned State Grid Corp of China holds 35% of Cassa Depositi e Prestiti SpA, an investment vehicle owning almost a third of Italy's Snam.
The Italian group signed a deal in April to buy a 24.99% stake in Open Grid Europe's (OGE) owner Vier Gas Holding from Abu Dhabi's Infinity Investments, aiming to enter the German gas market, the biggest in Europe.
The agreement was terminated after a prolonged foreign direct investment review by Germany, after Snam’s proposed remedies to secure regulatory clearance were found inadequate by the authorities.
Germany's economy ministry had been reviewing the deal since it was agreed. Its resistance reflects European governments taking a tougher stance against Chinese investment in Europe due to security concerns.
reuters.com/business/energ
bloomberg.com/news/newslette