A2A, Ardian ink non-binding terms for EUR 4.5bn energy deal in Italy

Italian utility A2A SpA (BIT:A2A) and Paris-based investment house Ardian have signed a non-binding agreement to establish “one of the largest electricity producers and suppliers in Italy” and accelerate the energy transition, the partners announced this week.

Under the basic terms, the new entity would be controlled by A2A, which will contribute its fully- or majority-owned energy generation assets, supply business, storage assets and green hydrogen projects, all totalling a combined enterprise value of around EUR 3 billion (USD 3.65bn). The energy generation portfolio would consist of hydropower plants, wind and solar farms and combined cycle gas turbine (CCGT) plants.

Ardian would pour EUR 1.5 billion into the new company and hold a 45% stake. Ardian’s investment is meant to speed up the roll-out and financing the utility’s 3-GW-plus plan for renewables, the parties said in their joint statement.

“The agreement with Ardian would make it possible for A2A to accelerate by several years reaching the growth objectives in renewable generation foreseen by the Industrial Plan, combining financial resources with industrial assets,” said A2A CEO Renato Mazzoncini.

A2A and Ardian last year agreed to jointly explore green hydrogen opportunities.

The new company, which the partners aim to turn into the second largest Italian platform focused on the energy transition, and one of the largest power producers, would serve as the exclusive vehicle for A2A and Ardian’s future investments in Italy’s renewables sector and as the preferred vehicle for joint investments in the energy generation business in the country.

Some potential targets have already been identified with the partners planning to evaluate further opportunities. A2A and Ardian

The proposed partnership is subject to successful due diligence, negotiations of certain binding agreements and other conditions.

A2A and Ardian gave each other binding exclusivity periods until the end of 2021.

(EUR 1.0 = USD 1.216)

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