ENI buys Neptune for 4.9 billion. The largest operation in recent years in Europe
After weeks of speculation, Italian energy major Eni said Friday it had reached an agreement with Vår Energi to buy private equity firm Neptune Energy for an enterprise value of $4.9 billion. , the largest cash transaction in the European oil and gas sector in recent years.
Under the terms of the agreement, Vår Energi – 63% owned by Eni – will acquire the Norwegian operations of Neptune, which have an enterprise value of approximately $2.3 billion, while the Neptune Global Business will pass to Eni for a enterprise value of approximately $2.6 billion.
Neptune Energy's operations in Germany are not part of the transactions and will continue to be owned and operated by Neptune's current shareholders as a standalone group, Neptune said.
Neptune, an exploration and production company, mainly owns low-carbon gas-oriented assets and operates in the British North Sea, offshore Norway, North Africa, Indonesia and Australia. Neptune is currently owned by China Investment Corporation, funds advised by Carlyle Group and CVC Capital Partners, and certain executives.
Completion of the acquisitions is contingent upon, among other things, receipt of necessary regulatory and government approvals, and the transactions are expected to close by the end of the first quarter of 2024.
“The transaction represents an exceptional opportunity for Eni. It complements Eni's key areas of geographical concentration and supports its goal of increasing the share of natural gas production to 60% and achieving net zero emissions (Scope 1+2) from the Upstream business by 2030,” the group said. Italian in a press release.
Eni's Chief Executive Officer, Claudio Descalzi, commented: “Neptune will contribute predominantly gas resources to Eni's portfolio. In addition, the geographical and operational overlap is significant, as it adds scale to Vår Energi, Eni's majority stakeholder company, brings more gas and CCUS production opportunities to the rest of the North Sea area and builds on the leadership position of Eni in Algeria, a key supplier for the European gas markets”.
The deal is expected to add about 4 billion cubic meters (Bcm) of gas supply for European consumers, Descalzi noted.
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The article ENI buys Neptune for 4.9 billion. The largest operation in recent years in Europe comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/eni-compra-neptune-per-49-miliardi-la-piu-grande-operazione-degli-ultimi-anni-in-europa/ on Sat, 24 Jun 2023 06:00:08 +0000.