ROME, March 11 (Xinhua) -- Italy's competition regulator has approved the acquisition of 2i Rete Gas by Italgas, the country's largest natural gas distributor, while imposing conditions to ensure market competition, the authority said on Tuesday.
The deal strengthens Italgas's dominant position in the sector. However, the regulator has required the company to divest at least 20 percent of its operations in 31 of Italy's 65 territorial areas. In four additional areas, Italgas must sell a share equal to or greater than the market portion gained through the acquisition.
"These divestments will follow specific procedures and timelines outlined in the final decision and will be overseen by an independent monitoring trustee appointed by the authority," the regulator stated.
Financial markets initially reacted positively to the news, with Italgas shares surging early on Tuesday before closing down 0.72 percent amid heavy trading. Despite the decline, Italgas still outperformed the broader Milan Stock Exchange, where the blue-chip index dropped 1.38 percent after a late-session rally.
Shares of 2i Rete Gas remain privately held and are not publicly traded.
