E.ON looks to sell gas transport business

 
City A.M. Reporter
E.ON is considering selling its natural gas transport network, a company source said, as Germany’s decision to abandon nuclear power forces the group to shed assets and jobs.

The group may decide to sell Open Grid Europe, a subsidiary of E.ON’s Ruhrgas unit, which operates a 12,000km network and employs about 1,800 people.

“They’ve been put on display in the shop window,” the source said about the operations, adding the process was at a very early stage, with no current negotiations.

E.ON – which acquired Ruhrgas for €10bn (£8.8bn) in 2003 – declined to comment.

The company is under pressure due to Germany’s decision to abandon nuclear power, and last week announced an overhaul of its business, including up to 11,000 job cuts.

“Gazprom would be an obvious candidate [to buy the asset], as the company has been keen to expand its presence in European midstream assets,” UniCredit analysts wrote in a note to investors.