Jun 23, 2023 - Economy

Italian oil giant in $4.9 billion to buy Neptune Energy

Dan Primack

Illustration of a handshake in a graphic circle next to stacks of oil barrels — Illustration: Annelise Capossela/Axios

Italian oil major Eni has agreed to buy most of London-based oil and gas company Neptune Energy for $4.9 billion in cash from a group of private equity firms.

Why it matters: This is the largest all-cash European energy merger in years, and comes amid two countervailing trends: The need to replace lost Russian imports, and the need to reduce carbon emissions.

Details: Eni will pay $2.6 billion (including debt), excluding Neptune's Germany and Norway businesses.

The German unit will get carved out prior to the deal, while Eni's Oslo-listed listed subsidiary, Vår Energi, will buy the Norway portfolio for $2.3 billion (including debt).
Sellers include Carlyle, CVC Capital Partners and China Investment Corp.

The bottom line: Eni, which is around 30% owned by the Italian government, argues that the Neptune deal can meet its dual mandate. CEO Claudio Descalzi said in a press release that his company "sees gas as a critical bridge energy source in the global energy transition."

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Italian oil giant in $4.9 billion to buy Neptune Energy

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