ČEZ completes takeover of majority stake in Czechia's largest gas distributor GasNet

The ČEZ energy group has completed its takeover of a majority stake in GasNet, the largest gas distributor in Czechia. The acquisition supports the transition of district heating from coal to natural gas and hydrogen, the company told the Czech News Agency today. ČEZ paid 846.5 million euros (roughly CZK 21.2 billion) for its 55.21 percent stake in the distribution company. The stake was previously managed by Macquarie Asset Management.

„We are very pleased to have secured approval from the European Commission and the Ministry of Industry and Trade and to have completed the acquisition of GasNet, which will allow us to make further progress in transforming ČEZ and modernising the Czech energy sector,“ said ČEZ CEO Daniel Beneš.

In district heating, the company wants to switch from coal to gas and biomass by 2030 at the latest. It also plans to subsequently convert gas infrastructure to distribute so-called green hydrogen produced in a more environmentally friendly way.

GasNet supplies natural gas to households and businesses throughout Czechia, apart from Prague and the South Bohemian Region. It manages 65,000 kilometres of gas pipelines and has more than 2.3 million customers. It therefore holds around an 80 percent share of gas distribution in Czechia. It distributes 66 terawatt-hours (TWh) of gas annually. There are many potential synergies in operating electricity and gas distribution networks, said ČEZ Deputy Chairman of the Board Pavel Cyrani. „We now want to focus on those,“ he added.

The acquisition is apparently the semi-state-owned ČEZ's largest investment of the year. In early August, ČEZ Chief Financial Officer Martin Novák told the Czech News Agency that planned changes at the gas company being taken over would be very limited. The company's other shareholders are Allianz and Canada's BCI. According to Novák, talks about a possible increase in ČEZ's stake are not currently on the agenda; for now, the company wants to focus mainly on smoothly integrating GasNet into its group.

GasNet fell to a loss of more than CZK 303.5 million last year. The company reported a net profit of more than CZK 1.89 billion the year before. The company's revenue also fell by around six percent year on year last year, to CZK 13.5 billion.

The ČEZ Group is one of the largest energy companies in Czechia. The state is its majority shareholder, holding around 70 percent of its shares through the Ministry of Finance. The group earned CZK 21.1 billion in the first half of this year. Its net profit therefore fell by five percent year on year.