MILAN (Reuters) -Italy’s Snam was amazed by the lengthy approval process it faces over its acquisition of a stake in Germany’s largest independent gas transmission operator, its CEO told an Italian newspaper, hinting the group could pull the deal.
The Italian gas grid operator signed a deal in April to buy 24.99% in Open Grid Europe, paving the way for Snam to enter the German gas market.
“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,” Snam’s CEO Agostino Scornajenchi told daily Il Sole 24 Ore.
The asset is interesting, but Snam would not pursue the acquisition “come hell or high water,” Scornajenchi added.
Part of the information requested by the German authority was related to the role of China’s State Grid, an indirect investor in Snam, sources told Reuters.
Germany’s economy ministry, which is reviewing Snam’s acquisition, declined to comment.
China’s State Grid owns 35% in CDP Reti, which in turns holds 31.4% of Snam.
In 2018, Germany blocked an attempt by China’s State Grid to buy a stake in power grid operator 50Hertz.
($1 = 0.8510 euros)
(Reporting by Francesca Landini in Milan, additional reporting Christoph Steitz in Frankfurt; Editing by Bernadette Baum)
