2021 has been a banner year for pipeline deals as energy companies continue their transition away from the most environmentally damaging fossil fuels, like coal, towards cleaner alternatives like natural gas and renewable energy.
Now two investment funds, EDF and DIF, are shopping around the German pipeline company Thyssengas GmbH and looking for a buyer. Beyond the strong market for deals right now, concerns over the viability of fossil fuels in Germany due to the increasingly tough regulatory environment acted as a catalyst to start the sale process.
The two funds are reportedly looking to fetch nearly $1.45 billion for the pipeline. If they get that price, the investment would be a resounding success since the pipeline was purchased from Macquarie in 2016 for just $850 million.
EDF and DIF are expecting to begin getting offers by late July as they look to offload the asset.