Sale process completed: VNG takes over Gas-Union

HKCF acted as exclusive M&A adviser to VNG AG

The acquisition of Gas-Union GmbH by Leipzig-based energy group VNG AG has officially been completed. Following VNG’s successful bid in a Europe-wide auction process earlier this year, the transaction has now received full approval from antitrust authorities and relevant corporate governance bodies. Closing occurred on Wednesday, September 30, 2020.

“Gas-Union is a company with a long-standing tradition and strong reputation, particularly in gas trading and sales, where it has earned recognition for its customer-centric approach,” said Ulf Heitmüller, CEO of VNG AG. “By acquiring a direct competitor, we are strengthening our position in the German gas market. We operate in a challenging environment marked by intense competition. This acquisition is a proactive step in the ongoing market consolidation, and positions us for broader growth and strategic optionality. Gas-Union’s activities in trading, transmission, and storage represent a valuable and complementary addition to our existing portfolio.”

Heitmüller continued: “The focus now is on ensuring a smooth and value-accretive transition for all stakeholders. This includes future positioning of Gas-Union’s grid operations, trading activities, and storage assets. Over the coming weeks, we will engage in detailed discussions with Gas-Union’s leadership to determine the next steps for specific business units and to assess potential impacts on employees. We are committed to identifying solutions that are both economically sound and socially responsible.”

Both VNG AG and Gas-Union GmbH are active across the full gas value chain, with capabilities in trading & sales, transport, storage, and biogas. Gas-Union serves regional and municipal utilities, industrial clients, and power stations across Germany. Its transmission system extends 544 km, and the company operates gas storage facilities at four locations with a combined working gas volume of 3.42 TWh.

Prior to the transaction, the largest shareholder in Gas-Union was Mainova AG (34.27%), followed by RGE Holding GmbH (23.57%), Kraftwerke Mainz-Wiesbaden AG (15.91%), Städtische Werke AG (9.18%), Stadtwerke Göttingen AG (6.12%), Stadtwerke Essen AG (4.55%), Energie- und Wasserversorgung Mittleres Ruhrgebiet GmbH (4.55%). These shares have now been fully transferred to VNG AG. In addition, Gas-Union GmbH itself holds 1.85% treasury shares.