Rome won't curb China's presence in Italy's state grid company - sources

The sources said on Monday the renewal does not imply changes in the governance of CDP Reti, which give State Grid no control over the energy grid company. CDP Reti owns a 29.85% stake in Terna, 31.35% of Snam and about 26% of Italgas, Italy's biggest gas distributor.

Italy won't use its powers to curb the presence of State Grid Corporation of China in its own strategic electricity and gas grid company, in which the Beijing-controlled group holds a 35% stake, people close to the matter said. The decision signals a pragmatic approach by Prime Minister Giorgia Meloni towards Chinese investments in Italy, after her administration last June imposed measures to curb the influence of China's Sinochem on tyre maker Pirelli.

Italian state lender Cassa Depositi e Prestiti (CDP) and China's State Grid are set to renew a shareholder pact on Nov. 27, detailing the governance of CDP Reti, which owns roughly a third of Italy's power and gas grid operators Terna and Snam. The renewal will not trigger government scrutiny under Italy's so-called golden power regulation aimed at shielding strategic assets, three sources told Reuters.

State Grid bought its 35% stake in CDP Reti from CDP in 2014. Reuters was first to report in July that the investor agreement between the two shareholders would come up for renewal, after neither party made use of an opt-out option six months before the expiry date.

But at that time the Italian government's stance was unclear. The sources said on Monday the renewal does not imply changes in the governance of CDP Reti, which give State Grid no control over the energy grid company.

CDP Reti owns a 29.85% stake in Terna, 31.35% of Snam and about 26% of Italgas, Italy's biggest gas distributor.

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