Italy: NHOA under government supervision after TCC offer

Italian energy storage company NHOA is currently in the government spotlight after its main shareholder, Taiwan Cement Corp (TCC), announced a takeover bid to delist the company from the Paris stock exchange. This initiative was revealed by two sources close to the case.
Italy’s “golden powers” legislation enables the government to block or impose conditions on foreign and domestic investment in strategic sectors such as energy, telecommunications and banking. Prime Minister Giorgia Meloni’s office wants to check whether TCC plans to reorganize NHOA ‘s management or move its strategic activities abroad once the company has been delisted from the French stock exchange.

Background and government concerns

This vigilance comes at a time when energy sovereignty and independence have become crucial issues for Italy. The country has also received a $38 billion subsidy to accelerate the production of renewable electricity. The sources indicate that the Meloni administration wants to ensure that NHOA, positioned at the forefront of the battery storage sector and sustainable energy technological innovation, will not undergo any changes that could harm the country’s strategic interests.
NHOA, formerly known as Engie EPS, stands out for its partnerships and capacity for innovation. In particular, it works with carmaker Stellantis through their joint venture Free2move eSolutions. These partnerships testify to NHOA’s importance in the European energy landscape, and justify the vigilance of the Italian authorities.

Buyback offer and future implications

Last month, NHOA announced that it had been informed of TCC’s intention to file a simplified public offer at a price of €1.1 per share. TCC stated that private ownership would enable NHOA to implement its long-term strategies more effectively, without the pressures of the financial market.
However, this announcement raised concerns about the possible relocation of NHOA’s strategic activities. In 2021, when TCC took control of NHOA with the agreement of the Italian authorities, the government at the time, led by Mario Draghi, stipulated that the Taiwanese group had to inform the firm of any plans to relocate or change governance.

Market reactions and outlook

NHOA shares are currently stable at 1.08 euros, well below the all-time high of 2.9 euros reached in July 2023. This stagnation reflects the uncertainties surrounding the company’s future and questions about TCC’s intentions.
As the Italian government continues its review, market players and energy industry stakeholders are keeping a close eye on the situation. The results of this monitoring could have significant repercussions not only for NHOA and its employees, but also for the energy storage sector in Europe.
The tensions surrounding TCC’s takeover of NHOA illustrate the challenges of protecting national interests in a context of increasing globalization. The outcome of this case could set a precedent for other strategic sectors faced with foreign acquisitions.