The Spanish company Asterion buys the German energy supplier Steag for 2.8 billion US dollars

FRANKFURT/DUSSELDORF, Aug 25 (Reuters) – Spanish infrastructure investor Asterion announced on Friday that it has agreed to acquire German energy utility Steag. The deal is valued at around 2.6 billion euros ($2.81 billion), committing the energy company to transition into a green energy producer.

According to four sources with knowledge of the negotiations, Asterion has outbid Czech billionaire Daniel Kretinsky.

Asterion Industrial Partners is an infrastructure fund active in the energy, telecoms and mobility sectors with approximately €5 billion (US$5.39 billion) of investments.

Kretinsky, who was competing to buy Steag through his energy holding company EPH, has joined forces with Germany’s RAG-Stiftung, which is helping Germany transform coal-mining regions into renewable energy areas, according to the sources.

The Czech billionaire, who built his fortune in the energy sector, recently embarked on an acquisition spree in Europe. He has already struck a deal to buy struggling French retailer Casino (CASP.PA) and is in talks to become a shareholder in IT consultancy Atos (ATOS.PA).

Steag still operates six coal-fired power plants in western Germany and will require significant investment to transform into a renewable energy company.

Asterion said it supports the German government’s plans to phase out coal-fired power plants and will invest to transform Steag into a green energy producer.

It has also undertaken to keep Steag’s headquarters in Essen in the state of North Rhine-Westphalia.

Approval by the competition authorities is expected by the end of the year, according to a press release from Steag’s previous owners, Kommunale Beteiligungsgesellschaft (KSBG), which represents the municipal utilities of the cities of Bochum, Dinslaken, Dortmund, Duisburg, Essen and Oberhausen.

($1 = 0.9264 euros)

Reporting by Emma-Victoria Farr, Andres Gonzalez Estebaran, Tom Kaeckenhoff, and Jan Lopatka; writing by Rachel More; Adaptation by Susan Fenton and Jason Neely

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Andres Gonzalez covers M&A for Reuters based in London. With over 12 years experience as a correspondent in Spain, he has covered various sectors including banking, TMT, energy, infrastructure and real estate. Andres has also covered major breaking news events such as the Barcelona attacks and several general elections, demonstrating his versatility and ability to handle critical and time-sensitive stories. Andres’ journalistic career began at Reuters in Spain, where he honed his expertise in financial reporting. In search of new challenges, he ventured into the world of public relations, working for Banco Santander with a particular focus on wealth management and investment banking. His experience in both journalism and PR has given him a broad perspective of the financial industry. Contact: +34636287872

Emma-Victoria reports on mergers and acquisitions across Europe and has previous experience at Mergermarket, Bloomberg, The Daily Telegraph and Deutsche Presse Agentur.