By Elvira Pollina and Andres Gonzalez

MILAN/LONDON (Reuters) -Spanish gas grid operator Enagas is in talks to acquire Singaporean sovereign wealth fund GIC’s 32% stake in Terega, France’s second-largest gas transmission operator, according to two people familiar with the situation.

Terega is also a partner of the Spanish company in a hydrogen pipeline project to connect Spain and France and the companies also operate gas pipeline connections between the two countries.

The stake could be worth around 600 million euros ($693.60 million), with the French company’s valuation, including debt, estimated at around 4 billion euros, according to one of the people. Enagas market capitalisation was 3.6 billion euros as of Monday’s close, according to LSEG data.

No deal is certain, the sources sai

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