ČEZ buys Gas Distribution, which distributes gas in South Bohemia and the Czech Vysočina region

State-controlled energy company ČEZ has bought a 100% stake in Gas Distribution, which operates a gas network in South Bohemia and parts of the Vysočina region. ČEZ will thus now distribute gas throughout Czechia, with the exception of Prague. ČEZ spokesperson Martin Schreier told the Czech News Agency (ČTK) today. Neither company disclosed the price.

"Nuclear power plants and renewable sources will play a key role in electricity generation in the future. At the same time, gas will also play an important role as a fuel for combined-cycle power plants and new Czech heating plants, which will replace retiring coal-fired sources in the Czech Republic," said ČEZ CEO Daniel Beneš.

According to him, the acquisition of Gas Distribution will add a stable company in a regulated part of the business to ČEZ's portfolio, which is beneficial for shareholders.

ČEZ bought Gas Distribution through its subsidiary GasNet from E.ON. The deal still requires approval from regulatory authorities.

Gas Distribution manages a network of 4600 kilometres of gas pipelines, with a total of 111,000 connection points. It has around 120 employees and distributed 2.8 terawatt-hours of gas in 2024. The GasNet Group manages a network of 65,000 kilometres of gas pipelines, has more than 2200 employees, serves around 2.2 million connection points and distributed more than 59 terawatt-hours of gas last year.

"Once the transaction is completed, we want to gradually integrate Gas Distribution into the GasNet Group. Gas will be a key energy carrier in the coming years for ensuring Czechia's energy security in electricity and heat supply, and we are pleased that we will be able to rely on additional experts to help us achieve our goals," said GasNet CEO Andrzej Martynek.

ČEZ is one of the largest energy companies in Czechia. The state is its majority shareholder, holding around 70% of its shares through the Ministry of Finance. In the first half of this year, the company cut its net profit by more than a fifth to 16.5 billion korunas. The decline was also greater than analysts had originally forecast; they said the company's results were affected mainly by high depreciation and taxes.