Italian utility company A2A joins with investment fund Ardian in a€4.5billion green deal. The cash-and-asset deal will create Italy’s second largest green energy provider.
A2A, Italy’s biggest regional utility will be able to process its green transition thanks to the partnership.
There is increasing pressure to move to cleaner energy and many companies are restructuring their businesses as a result. One way is to join forces with private investors to help to fund their green strategies.
The non-binding agreement between A2A and Ardian sees the fund putting up to €1.5billion into a new company, which will house some A2A assets. The enterprise value of those assets is around €3billion.
A2A will transfer to the new company its hydrogen, wind and solar power plants alongside its energy supply business and storage assets, it said late on Tuesday.
“A2A and Ardian are aiming to establish the second-largest Italian platform focused on the energy transition, and one of the largest electricity producers and suppliers in Italy, with a clear decarbonisation strategy,” A2A said.
Ardian will hold a 45% stake in the new company. A2A will own the remaining 55%.
Potential investment targets identified
Last year, the two companies agreed to develop green hydrogen projects together. It is believed they are also bidding together on hydroelectric and gas assets which are up for sale by Italian wind power operator ERG.
The two groups have already identified potential investment targets and plan on evaluating further opportunities in the future. “The agreement with Ardian would make it possible for A2A to accelerate by several years reaching the growth objectives in renewable generation,” A2A CEO Renato Mazzoncini said.
A2A pledged to spend €16billion by 2030 in order to cut its carbon footprint. It also has a target of tripling its renewable capacity to 5.7 gigawatts. This would be achieved through over €4 billion in investment and acquisitions. The local governments of Milan and Brescia control the company.
Ardian is also a shareholder of Italian fund F2i which is one of Italy’s biggest renewable energy players.