USS enlists Deutsche Bank to advise on potential purchase of Redexis stake from Chinese partners
Executive summary: USS and ATP hired Deutsche Bank to advise on whether to buy the 33% stake in Redexis owned by Chinese shareholders or to participate in a divestment, with Nortegas seen as the likely buyer if the entire company were offered. The decision could alter the ownership structure of Spain’s gas distribution network, influencing market consolidation and regional energy infrastructure.
Who is involved: USS, ATP, Deutsche Bank, Chinese shareholders of Redexis, and potentially Nortegas as a buyer.
Likely next (inference): USS and ATP must reach a decision within about one month; if they opt to buy, negotiations and regulatory approvals would follow.
The UK pension fund USS has mandated Deutsche Bank to advise on whether to acquire the 33 % holding in Redexis currently owned by Chinese investors or to join a possible divestment of that stake. The advisory engagement comes with a deadline of approximately one month for USS to reach a decision on the next steps. Deutsche Bank’s role is to provide an external assessment of the strategic fit and financial considerations associated with increasing USS’s exposure to the Spanish gas distributor. The outcome of this review could alter the ownership structure of Redexis, which is a key player in Spain’s natural‑gas distribution network. If USS opts to purchase the stake, it would deepen its involvement in European infrastructure assets; if it chooses to participate in a divestment process, the stake could be offered to other interested parties. Should the entirety of Redexis be put up for sale, the story indicates that the Spanish gas distributor Nortegas is viewed as the favoured buyer. Within the coming weeks, USS’s decision will clarify its infrastructure investment strategy and may influence near‑term market dynamics around Redexis’s shareholding.
What's next — scenarios
Inference: scenarios and probabilities are Beyond's assessment, not reported fact.
Base: USS acquires 33% stake (50%)
USS becomes a minority shareholder in Redexis, leaving the current ownership structure largely unchanged and limiting immediate impact on the Spanish gas market.
- USS announces decision to buy the 33% stake within 30 days
- No competing bid emerges
- Antitrust clearance obtained for the transaction
Upside: USS leads consortium to buy 100% of Redexis (30%)
Full acquisition would shift control of Redexis to a USS‑led group, likely prompting a regulatory review of market concentration in Spain’s gas distribution sector.
- USS and ATP agree to pursue a full purchase
- Nortegas signals interest in buying Redexis if offered wholly
- Regulatory clearance for change of control secured
Downside: USS walks away, Chinese sell to third party (20%)
Chinese stakeholders sell their stake to another investor or strategic buyer, potentially leading to new ownership and possible asset reshuffling in the Spanish gas distribution market.
- USS declines to proceed after the advisory period
- Chinese shareholders initiate a sale process
- Alternative buyer emerges and secures regulatory approval
What to watch
- USS decision announcement within the next 30 days
- Nortegas expression of interest in acquiring Redexis if offered fully
- Regulatory filing for antitrust review of any Redexis transaction
Timeline
- — El fondo USS ficha a Deutsche Bank para decidir el futuro de Redexis (Expansión)
Analysis — what this means
Likely next events
- USS and ATP to decide on Redexis stake within 30 days
Sectors affected
- Gas distribution
- Energy infrastructure in Spain
Key entities
Sources
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