Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised Canada Pension Plan Investment Board (‘CPPIB’) on its investment, together with Allianz Capital Partners (‘ACP’), on behalf of the Allianz Group, in the Spanish gas distribution business of Gas Natural Fenosa (‘GNF’). The consortium will invest €1.5bn for a 20 per cent equity stake, with CPPIB and ACP funding €900m and €600m, respectively.
 
GNF’s gas distribution business is the largest gas distribution network in Spain with more than 5.3 million connection points serving some 1,100 municipalities. Its customer base stretches across a diverse residential and industrial geography, and it provides its customers with access to a cost-efficient, reliable and environmentally friendly source of energy. After closing, which is subject to antitrust clearances and is expected by early 2018, GNF will continue to own the remaining 80 per cent equity interest in the business.
 
Commenting on the deal, Freshfields partner Richard Thexton said, ‘We are delighted that our expertise in cross-border transactions helped our client succeed in this significant investment. This deal clearly demonstrates the continued attractiveness of regulated assets to direct investors, which is a trend we believe will likely continue across geographies and sectors as we go forward’.
 
The multijurisdictional Freshfields team was led by partner Richard Thexton, while partner Silvia Paternain led on the tax elements and partner Armando Albarrán on Spanish corporate advice. Richard was supported by associates Peter Ellis and Jay Swain.