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    Verbund Files Binding Bid for Austrian Gas TSO Stake


OMV wants to shed $2.3bn of assets by the end of 2021.

by: Joseph Murphy

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Verbund Files Binding Bid for Austrian Gas TSO Stake

Austria's biggest power company Verbund said on June 15 it had filed a binding offer to acquire oil firm OMV's remaining 51% stake in transmission system operator Gas Connect Austria.

Gas Connect operates a 900-km pipeline across Austria including major hub Baumgarten, providing capacity for domestic supply and transit volumes. OMV sold a 49% interest in the company to Munich-based financial group Allianz and Italy's Snam in 2016. The oil firm is looking to shed €2bn ($2.3bn) of assets by the end of 2021, to shore up its financial position in the face of the Covid-19 crisis and fund a $4.7bn deal to expand its control of UAE petrochemicals firm Borealis.

Verbund did not say how much it had offered for OMV's stake in Gas Connect. But Allianz and Snam paid €601mn for their share four years ago.

"The offer is subject to agreement between Verbund and OMV on the transaction contracts and the approval of the supervisory board. The offer is also subject to confidentiality," Verbund said.