Enagas-led group withdraws from race to acquire gas network TIGF

A consortium led by Spain’s Enagas SA (MCE:ENG) unveiled its decision not to submit an offer for French oil and gas firm Total SA’s TIGF gas network and storage business as the target does not match its strategy.

The consortium also includes Canadian fund Borealis and two other firms.

The remaining participants in the race are two group of investors. Belgium’s natural gas operator Fluxys Belgium SA (EBR:FLUX) and French state-controlled lender Caisse des Depots et Consignations (CDC) have joined hands with AXA Private Equity, Credit Agricole SA’s (EPA:ACA) Predica insurance unit, CNP Assurances SA (EPA:CNP) and the Abu Dhabi Investment Authority.

The other consortium includes French energy giant Electricite de France SA (EPA:EDF), which has teamed up with Singaporean sovereign wealth fund The Government of Singapore Investment Corporation Pte Ltd (GIC) and Italy’s Snam SpA (BIT:SRG).

The vendor expects firm bids by 4 February, Reuters said previously, citing sources.

The sale of TIGF, announced last autumn, is part of Total’s strategy to sell as much as EUR20bn (USD26.7bn) worth of assets by 2014 to bolster its cash flow and provide funds for substantial investments. According to analyst estimates, TIGF is valued at some EUR2.5bn.