SOCAR €400 million acquisition of 66% of DESFA

Overview:

• SOCAR had won the bid to acquire 66% of DESFA, the country's natural gas transmission system operator, however this has now been cancelled.
• A potential divestment of 17% to a third investor was being examined by SOCAR to allow the deal to comply with EU competition rules.
• The SPA was signed on December 2013 and the sale was expected to close by the end of 2016 but it was cancelled in December 2016 by the Greek energy ministry after disagreements around price.
• Greece passed a law in July 2016 raising DESFA’s gas tariffs from next year by a much lower amount than expected, this has stalled the deal.

Wai Yee Tsang - Journalist