Fluxys has joined forces with BlackRock’s Global Infrastructure Partners (GIP) and Brookfield for a joint takeover of German gas transmission operator Open Grid Europe (OGE), according to four sources familiar with the situation.

The Belgian utility, which already owns 24.11% of OGE, has teamed up with the two North American infrastructure investors to help fund a possible acquisition of the remaining 75.89% stake in OGE from the other shareholders, the sources said.

Fluxys, GIP, and Brookfield declined to comment.

British Columbia Investment Management Corporation (BCI), German asset manager MEAG, and Abu Dhabi Investment Authority (ADIA) are working with UBS to sell their combined majority stake in the company, which operates Germany’s largest gas transmission grid.

Fluxys, which is being advised by RBC, has rights of first refusal over its partners’ stake, but with a price tag that could reach around EUR 2.8bn, the utility had been scouting for other financial investors to help it fund a takeover.

The sellers have requested non-binding offers by Friday (24 April), and after bids are submitted Fluxys can decide whether to match the best offer.

This news service previously reported that other infrastructure fund managers have been considering bidding for OGE, including KKR, Igneo Infrastructure Partners, and JP Morgan Asset Management.

The threat of the well-funded Fluxys team matching any bid might however discourage other parties from competing in the auction, one of the sources pointed out.

Italian gas utility Snam last year set a price point for OGE, when it agreed to buy ADIA’s 24.99% stake for an equity value of EUR 920m, although the deal fell through due to regulatory opposition.

Another source added that if bidders match or exceed the same level – which equates to about EUR 2.8bn for the 75.89% stake on offer – this may create competition with the Fluxys team.

Brussels-listed Fluxys became a shareholder in OGE in 2023, when it acquired a stake from Macquarie Asset Management.

BCI is the largest shareholder in the company with a 32.15% stake, while MEAG owns 18.75%.

Essen-headquartered OGE operates a gas pipeline network of around 12,000 km across western and southern Germany, and connections to neighbouring European countries.

Brookfield and GIP have raised the world’s two largest infrastructure funds, at USD 30bn and USD 25.2bn respectively. The two investors previously teamed up for a major energy asset in 2020, forming a consortium that acquired a 49% stake in ADNOC’s gas pipelines in the UAE.

In the latest major European gas transmission deal, Spain’s national operator Enagas on Tuesday (21 April) agreed to buy a 31.5% stake in France’s Terega from Singapore sovereign wealth fund GIC for EUR 573m.