MILAN: Italgas, Europe’s largest gas distributor, said Friday it has agreed to acquire a 22.5% stake in Portuguese gas distribution company Floene from Japan’s Marubeni and Toho Gas for about €120 million ($130 million).

Floene is Portugal’s leading gas distribution operator.

The closing of the transaction is subject to conditions, including regulatory approvals.

“The transaction would generate significant industrial value, delivering benefits for customers, local communities and all stakeholders, while supporting the long-term development of the gas distribution sector in Portugal,” Italgas CEO Paolo Gallo said in a statement.

Rothschild and SocGen advised Italgas on the deal.

Italgas is a Network Tech Company and Europe’s largest gas distributor, serving approximately 13 million customers across Italy and Greece with a network exceeding 155,000 kilometers . Founded in 1837, the company has positioned itself at the forefront of the energy transition, investing in digital infrastructure and technologies to accommodate renewable gases such as biomethane, hydrogen and synthetic methane . The company completed its acquisition of Italian peer 2i Rete Gas in the first half of 2025, reinforcing its European leadership position .

Floene is Portugal’s leading gas distribution operator, managing nine regional distribution companies and serving approximately 1.1 million customers across 106 municipalities . The company operates a network of roughly 14,000 kilometers, predominantly made of polyethylene, which positions it to transport renewable gases including green hydrogen and biomethane . With origins dating to 1847, Floene rebranded from Galp Gás Natural Distribuição in 2022 and has set a goal of achieving 100% renewable gas distribution as part of Portugal’s decarbonization efforts .