The Canadian Pension Plan Investment Board Europe and Allianz Capital Partners have signed an agreement to acquire a 20 per cent minority equity interest in Gas Natural Fenosa’s gas distribution business in Spain.

The CPPIB and Allianz will invest about $1.3 billion and $900 million, respectively. Gas Natural Fenosa will retain the remaining 80 per cent of the business.

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The Spanish company’s distribution business “is a core infrastructure asset that fits well with CPPIB’s infrastructure portfolio, providing long-term stable cash flows for the CPP fund,” said Cressida Hogg, managing director and global head of infrastructure at the CPPIB. “We look forward to establishing an enduring partnership with [Gas Natural Fenosa] and Allianz in this world-class business, and in adding to our investments in Spain.”

The business represents the largest gas distribution grid in Spain, serving residential and industrial consumers in about 1,100 municipalities. Its parent company maintains a presence in that sector in more than 30 countries.

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Copyright © 2018 Transcontinental Media G.P. Originally published on

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