Asterion Acquires German Utility Steag in $2.8B Deal from Spain

27 Aug, 2023

Asterion Acquires German Utility Steag in $2.8B Deal from Spain

Spanish infrastructure investor Asterion has announced its agreement to acquire the German utility company Steag, in a transaction that values the business at approximately 2.6 billion euros ($2.81 billion). This move underscores Asterion's commitment to supporting Steag's transition into a leading green energy producer.

Asterion secured the acquisition by outbidding Czech billionaire Daniel Kretinsky, as confirmed by sources familiar with the negotiation process. Asterion Industrial Partners, an infrastructure fund with investments totaling around 5 billion euros ($5.39 billion), focuses on energy, telecommunications, and mobility sectors.

In contrast, Kretinsky had joined forces with Germany's RAG foundation in a joint bid attempt through his energy holding company EPH. RAG foundation's expertise in transforming coal mining regions into hubs for renewable energy complemented Kretinsky's ambitions in the energy sector.

Notably, Daniel Kretinsky has been actively expanding his European portfolio, recently making headlines with his acquisition of the struggling French retailer Casino (CASP.PA) and ongoing talks to become a shareholder in the IT consulting firm Atos (ATOS.PA).

Despite Steag's current operation of six coal power plants in western Germany, Asterion's acquisition signifies a strategic shift towards renewable energy. The company plans substantial investments to facilitate this transformation, aligned with the German government's efforts to decommission coal plants.

Moreover, Asterion is dedicated to maintaining Steag's corporate headquarters in Essen, North Rhine-Westphalia. The approval process from competition authorities is projected to conclude by year-end, according to a press release from Steag's former owners, the consortium Kommunale Beteiligungsgesellschaft (KSBG). KSBG represents municipal utilities in cities such as Bochum, Dinslaken, Dortmund, Duisburg, Essen, and Oberhausen. This acquisition signals a significant step towards Germany's clean energy transition.