Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Exclusive-Eni exploring sale of stake in bioplastic maker Novamont, source says

Published 15/12/2023, 16:01
© Reuters. FILE PHOTO: The logo of Italian multinational energy company Eni is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
ENI
-

By Francesca Landini and Valentina Za

MILAN (Reuters) - Eni is in discussions with funds interested in buying a minority stake in the Italian energy group's Novamont unit in a deal that could value the bioplastic maker at around 1 billion euros ($1.1 billion), a source close to the matter said.

Eni added Novamont to its chemical division earlier this year, by acquiring in October the 64% of the company it did not already own from private equity funds Investitori Associati II and NB Renaissance for an undisclosed price.

Teaming up with an investor could now help Eni grow Novamont more quickly, improving the sustainability credentials of its entire chemical business by increasing its exposure to the circular economy sector.

Piedmont-based Novamont, which Eni owns through its chemical unit Versalis, is the world's leader in the production of bioplastics.

The source said that investors interested in the potential deal included Norway's private equity fund HitecVision and U.S. fund Blackstone (NYSE:BX).

The discussions with potential investors are at a preliminary stage and Eni has taken no final decision on the size of the stake it could sell.

Eni and Blackstone declined to comment on the issue. HitecVision did not immediately respond to a request for comment.

Unlike regular plastics, which are mostly made from fossil fuels and accumulate in the environment, bioplastics are made from natural or renewable sources and can be biodegradable.

Novamont holds more than 1,400 patents and patent applications. One of its main products is MATER-BI, a group of biodegradable and compostable bioplastics, which are derived from starches, cellulose, vegetable oils and their combinations.

© Reuters. FILE PHOTO: The logo of Italian multinational energy company Eni is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo

The source said that Italian bank UniCredit (LON:0RLS) was advising Eni over Novamont. UniCredit declined to comment.

($1 = 0.9088 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.