State Grid Corporation of China (SGCC) signed an agreement with Italy’s Cassa Depositi e Prestiti (CDP) for the acquisition of a 35% stake held by the latter in energy firm CDP Reti on Thursday afternoon, reports said. CDP Reti holds a 30% stake in the electricity distribution network Terna.
The deal’s progress has been a subject of major interest for Greek officials as the Chinese and Italian firms are both taking part in an international tender for a 66% stake in Greece’s Independent Power Transmission Operator (IPTO), locally referred to as ADMIE. Both are considered to be strong candidates.
The IPTO privatization can now be anticipated to take place amid altered conditions as a result of the Chinese-Italian agreement.
The deal between SGCC and CDP, according to international media reports, is worth close to 2.1 billion euro. The amount is expected to be used to help ease Italy’s public debt figure.
The agreement, international reports noted, was signed in the presence of Italian Prime Minister. Mr. Matteo Renzi, the country’s Finance Minister, Mr. Pier Carlo Padoan, the CEO at Cassa Depositi e Prestiti, Mr. Giovanni Gorno Tempini, as well as the Chinese ambassador to Italy.
“This is the most significant investment by a Chinese firm in Italy as well as Europe, overall,” the Italian government noted in an announcement.