As part of the deal, Edison will acquire Gas Natural Fenosa-owned Gas Natural Vendita Italia, which commercializes natural gas and electricity across Italy, for €192.8m.
The Vendita Italia acquisition is subject to approval from the European Competition.
Gas Natural Vendita Italia had around 70 contracts in the wholesale market last year. It sold around 6TWh to industrial customers in the same year.
Upon completion of the deal, which is expected between December 2017 and March 2018, Edison will fully control and consolidate Gas Natural Vendita Italia.
Under the terms of the agreement, Edison will also acquire 11TWh long-term gas supply contract from the Shah Deniz II field for €30m.
The gas import from Shah Deniz II, which will add 16 billion cubic meters per year of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1, is scheduled to commence at the end of 2020 upon completion of the planned Trans Adriatic Pipeline (TAP).
Edison said that the transaction strengthens its position in the South of Italy, particularly in Puglia, Calabria and Sicilia regions while increasing its customer base by 50%.
Edison CEO Marc Benayoun said: “This transaction is a breakthrough opportunity for our company: on the one hand, we grow our role in the Italian retail market, which is one of the pillars of our development plan.
“On the other hand, through the acquisition of Shah Deniz II contract, we enlarge our gas supply portfolio guaranteeing gas at a competitive price to all our customers and the security of the Italian energy system in the long term.”
The acquisition is part of the firm’s development strategy to grow the retail business and the local market which is the key drivers of EDF’s CAP 2030 strategy.
