Snam CEO Says Able To Grow Without Eni

Italy's Snam SpA (SRG.MI) will have an easier time pursuing its aim of becoming a sector leader in Europe once its parent, oil giant Eni SpA (ENI.MI), gives up ownership of it, according to the natural gas grid operator's chief executive Wednesday.

The country's technocratic government has decided to force Eni to sell its more than 50% stake in Snam in order to liberalize the sector.

"Our strategy is to become a leader in Europe in the management of gas networks," Carlo Malacarne is quoted as saying in an interview with Italian newspaper la Repubblica. "The exit of shareholder Eni will facilitate our strategy."

Malacarne says Snam will have an easier time forming joint ventures and making acquisitions with Eni no longer as a shareholder. Eni is partly owned by the Italian state.

If Snam were to become a leading manager of Europe's gas pipelines, the market would become more liquid with operators resorting to a spot market rather than relying on long-term contracts for their supply of natural gas, he says.

Malacarne declines to comment on Snam possibly joining Belgium's Fluxys SA (FLYX.BT) in a bid for a network in Germany.

He says the idea of merging Snam with Terna SpA (TNR.MI), the operator of Italy's electricity grid, makes no sense.

Newspaper website: www.repubblica.it

-Milan Bureau, Dow Jones Newswires; +39 02 5821 9901

Fluxys Belgium (EU:FLUX)
Historical Stock Chart
From Jun 2024 to Jul 2024