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Macquarie Consortium to Acquire Open Grid Europe from E.ON for $4.07 Billion - E.ON Sells the Asset Amidst Deteriorating Profitability of its Midstream Gas Operations ? Deal Analysis from GlobalData

Macquarie Consortium to Acquire Open Grid Europe from E.ON for $4.07 Billion - E.ON Sells the Asset Amidst Deteriorating Profitability of its Midstream Gas Operations ? Deal Analysis from GlobalData

Table of Contents

Market Briefing
Published: May 2012
Pages: 9
Tables: For full details, please email deborahf@cmsinfo.com
From: GBP 312.50  Buy Now!
Research from: GlobalData
Sector: Energy

Macquarie Consortium to Acquire Open Grid Europe from E.ON for $4.07 Billion - E.ON Sells the Asset Amidst Deteriorating Profitability of its Midstream Gas Operations ? Deal Analysis from GlobalData

Summary

Macquarie European Infrastructure Fund 4 ?, a fund managed by Macquarie Group Limited and, along with its consortium members including British Columbia Investment Management Corporation, the Abu Dhabi Investment Authority's Subsidiary Infinity Investments; and MEAG, the asset management arm of Munich Re and ERGO ?, agreed to acquire German gas pipeline network operator Open Grid Europe GmbH (Open Grid Europe), an operator of gas pipeline network in Germany, from E.ON AG (E.ON), an integrated energy company, for a purchase consideration of ?3.2 billion ($4.07 billion). The purchase consideration includes around ?300m ($384.33m) in pension liabilities and other assets.

Macquarie Capital and the Royal Bank of Canada are acting as financial advisors to Macquarie consortium while Goldman Sachs is acting as financial advisor to EON in the transaction.

The transaction is subject to the approval of the German Federal Cartel Office and, pursuant to the Foreign Trade and Payments Act, the German Federal Ministry of Economics and Technology, and is expected to be completed in the third quarter of 2012.

The transaction implies a deal value of $0.67 per cubic feet of installed capacity.

Scope

- Rationale behind E.ON divesting Open Grid Europe
- Stratigic benefits for the companies involved in the transaction
- Geography covered - Germany

Reasons to buy

- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by E.ON. Rationale behind E.ON selling Open Grid Europe to Macquarie Group.
- Plan to acquire assets and to capitalise opportunites taking place in the pipeline market
- Identify the reason behind Macquarie Group behind acquisition of Open Grid Europe and mutual benifit to the investors of the company.

Keywords

Midstream, Gas, Divestment, renewable energy

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