On 15 November 2017, the Italian Competition Authority (“ICA”) launched an investigation to verify whether national operator 2i Rete Gas S.p.a.’s acquisition of Nedgia S.p.a., a member of the Gas Natural Fenosa group (“GNF Group”) active in the natural gas distribution sector in various local areas of central and southern Italy, will result in the creation or strengthening of a dominant position in the markets of future gas distribution service management tenders, involving at least 12 minimum territorial districts (ATEMs), located mainly in Sicily and Apulia, in addition to Campania, Molise and Lazio.
Given the position of the Parties in the ATEMs involved, this merger could alter the dynamics of future tenders in each ATEM and thus restrict the market competition required by legislation to determine the distribution contractor. Indeed, due to their current level of operation, 2i Rete Gas and Nedgia would be among the few companies - if not the only ones - able to compete for service management tenders in the aforementioned geographical areas.
The goal of the preliminary investigation - which is set to expire within 45 days from its start - is to verify whether and to what extent the merger will structurally alter participation in future gas distribution service management tenders in the 12 local districts mentioned and thus nullify the benefits of market competition.

Rome, 20 November 2017