EDF and Crédit Agricole are considering selling their stakes in Teréga, France's second-largest gas transmission operator, according to two sources close to the matter.

EDF's investment division, EDF Invest, and Crédit Agricole's insurance subsidiary, Predica, respectively hold 18% and 10% of Teréga, a company valued at nearly three billion euros, said the sources, who asked to remain anonymous because of the private nature of the negotiations.

The deal may not go through, warned one of the sources.

Teréga operates a two-way network between France and Spain and a regional network in southwest France, as well as two storage sites.

The company generated 494 million euros in service provision in 2023, up 0.4% on 2022.

EDF, Crédit Agricole and Teréga declined to comment.

Teréga's other two shareholders are the Singapore sovereign wealth fund GIC (31.5%) and the Italian energy infrastructure company Snam (40.5%).

The process of selling EDF's and Crédit Agricole's stakes began recently and could attract interest from infrastructure investment funds, said one of the two sources.

It should also be closely examined by the French Ministry of Finance, said the same source, as Teréga operates key energy infrastructures.

(Reported by Andres Gonzales in London and Mathieu Rosemain in Paris; Contributed by Benjamin Mallet; French version by Alban Kacher, edited by Blandine Hénault)

by Andres Gonzalez and Mathieu Rosemain