Headlines
Italy's Snam scraps German gas deal amid Berlin's concern over China
Published by Global Banking & Finance Review®
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
Snam cancels its German gas deal due to regulatory concerns over Chinese investment, maintaining its financial outlook.
By Francesca Landini and Giuseppe Fonte
MILAN (Reuters) -Italian gas grid operator Snam said on Friday it has scrapped plans to acquire a minority stake in Germany's largest independent gas transmission firm, amid resistance from the German economy ministry.
Berlin's concerns over the 920-million-euro ($1.1 billion) transaction stem from the presence of China's State Grid as an indirect investor in Snam, Reuters reported earlier in the day, citing two sources familiar with the matter.
The Italian group signed a deal in April to buy a 24.99% stake in Open Grid Europe's (OGE) owner Vier Gas Holding from Abu Dhabi's Infinity Investments, aiming to enter the German gas market, the biggest in Europe.
The agreement was terminated after a prolonged foreign direct investment review by Germany, Snam said in a statement, saying its proposed remedies to secure regulatory clearance were found inadequate by the authorities.
The company added that the development will not impact its full-year 2025 financial outlook.
Germany's economy ministry had been reviewing the deal since it was agreed. Its resistance reflects European governments taking a tougher stance against Chinese investment in Europe due to security concerns.
Snam would not pursue the acquisition "come hell or high water" amid the lengthy approval process, CEO Agostino Scornajenchi previously signalled.
Germany blocked an attempt by China's State Grid to buy a stake in power grid operator 50Hertz in 2018.
($1 = 0.8575 euros)
(Reporting by Francesca Landini in Milan, Giuseppe Fonte in Rome, Mrinmay Dey in Bengaluru, additional reporting by Andreas Rinke in Berlin; Editing by Susan Fenton and Cynthia Osterman)
Foreign direct investment (FDI) refers to an investment made by a company or individual in one country in business interests in another country, typically by establishing business operations or acquiring assets.
A financial outlook is a projection of a company's future financial performance, including expected revenues, expenses, and profitability, often used for strategic planning and investment decisions.
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