AGCM

PRESS RELEASE

GAS DISTRIBUTION: ANTITRUST AUTHORITY LAUNCHES INVESTIGATION INTO TRANSFER OF JOINT CONTROL OF ISONTINA RETE GAS (IRG) TO ACEGAS-APS AND ITALGAS

Operation could affect future tenders in 6 Ambiti Territoriali Minimi (Minimum Geographical Areas).

In a meeting on 05^th March 2013, the Autorità garante della concorrenza e del mercato decided to launch an investigation in order to ascertain whether the transfer of joint control of Isontina Rete Gas (IRG) from Eni and Acegas-Aps to Italgas and Acegas-Aps (Hera Group) may have anti-competitive effects in future tenders for gas distribution concessions in 6 Ambiti territoriali minimi (ATEM: Minimum Geographical Areas). Specifically these effects might occur in the following ATEMs: Padua 1, Padua 2, Padua 3, Pordenone, Trieste and Gorizia.

The operation, which also involves a shareholders’ agreement between Italgas and Acegas-Aps requiring that both parties abstain from participating in forthcoming tenders in the six ATEMs concerned, also entails the transition from exclusive to joint control of business units consisting of gas distribution assets in the Padua 1, Padua 2, Padua 3, Pordenone and Trieste ATEMs which were previously held individually by Italgas and by Acegas-Aps.

According to the Antitrust Authority such concentration has the potential to lead to the creation or consolidation of a dominant position, producing a significant, lasting reduction in competition: as a result of the merger, in fact, Italgas and Hera/Acegas-Aps, the two largest operators in the ATEMs concerned, will take part in tenders through IRG rather than independently, thus being able to eliminate competition between each other.

The investigation is scheduled to be completed within 45 days with effect from 05^th March.

Rome, 06^th March 2013