By Francesca Landini
MILAN (Reuters) -Snam expects a decision from Germany’s economy ministry by November 17 on its planned acquisition of a minority stake in Open Grid Europe, the country’s largest independent gas transmission operator, the Italian group’s CFO said on Wednesday.
The deal has been at risk of falling through after the German ministry extended its review and requested documents related to the presence of a Chinese investor in Snam’s shareholder base, sources have said.
“We have a long-stop date with our counterpart that ends on Nov. 17. Our expectation is to have an answer by then, one way or the other,” CFO Luca Passa told analysts on a post-results call.
Snam agreed in April to buy 24.99% of Open Grid Europe, aiming to enter the German gas market. The acquisition was initially expected to close by the end of September but is still awaiting regulatory approval.
Passa said Snam could sell assets or issue a hybrid bond if the transaction is completed by year-end.
The state-controlled group has hired Rothschild and BNP Paribas to sell its biomethane business, which could hit the market shortly after year-end.
“The biomethane business has a value of 560 million euros as of today,” Passa said.
Snam nudged up its 2025 profit guidance after reporting a 6.6% rise in nine-month core earnings.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 2.23 billion euros ($2.6 billion), slightly above the 2.21 billion euro consensus in a Reuters analyst poll.
Adjusted net income climbed 10% to 1.1 billion euros, in line with expectations.
The group now sees adjusted core earnings reaching about 2.95 billion euros this year, up from a previous forecast of 2.85 billion euros.
($1 = 0.8575 euros)
(Reporting by Francesca Landini; Editing by Ros Russell and Emelia Sithole-Matarise)
