A rare loss for billionaire Daniel Kretinsky, Asterion agrees to buy German utility Steag for $2.8 billion

Asterion Industrial Partners, a Spanish infrastructure investor, has agreed to acquire German utility Steag from the consortium Kommunale Beteiligungsgesellschaft (KSBG), which represents the municipal utilities of the cities of Dortmund, Duisburg, Bochum, Essen, Oberhausen, and Dinslaken.

The deal values Steag at approximately €2.6 billion ($2.8 billion) euros and is expected to be completed by December. Asterion will take over both of Steag’s units, Steag Power and Iqony.

Steag currently operates six coal-fired power plants in western Germany. With a focus on transitioning to greener energy, Asterion plans to invest a minimum of €1 billion ($1.1 billion) in the company and take on around €1 billion of Steag’s unfunded pension liabilities.

Steag was sought after by both Asterion and Czech billionaire Daniel Kretinsky‘s energy holding company EPH. However, Asterion emerged as the successful buyer, marking a rare loss for Kretinsky. Kretinsky already owns Leag, which is one of the largest power producers in Germany and recently won a bid for French supermarket chain Casino Guichard Perrachon SA.

Jesús Olmos Clavijo, CEO Asterion Industrial Partners, commented: “Our firm is fully committed to the energy and heat transition and STEAG is very well positioned to be a very relevant player in Germany and Europe in this process towards cleaner, more competitive and reliable energies such as solar and wind power, while offering an interesting energy mix that is also supported by coal and gas to guarantee the viability of this transition. It also has a team of experienced management and skilled employees with technical expertise in wind, solar, and district heating. Its energy sites have excellent infrastructure and are optimally connected to the German energy grid. With the experience of Asterion’s team in managing companies in green transformation, we are excited to work together to deliver on STEAG’s decarbonization plans and create new, green jobs.”

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