Eni is enhancing its energy transition strategy with a major deal involving KKR’s €2.94 billion ($3.17 billion) acquisition of a 25% stake in Eni’s biofuels unit, Enilive. This transaction not only boosts Eni’s capital structure but also aligns with its ‘satellite’ strategy, allowing Eni to retain control while securing significant investment to support decarbonization efforts.

The Deal Details:

• Transaction Size: KKR will purchase a 25% stake in Enilive, valuing the business at €11.75 billion, including debt.
• Structure: Includes a €500 million capital increase from KKR and €2.438 billion in share sales by Eni, with Eni injecting an additional €500 million to make Enilive debt-free before closing.
• Strategic Impact: Strengthens Eni’s focus on sustainable energy, particularly biofuels for the trucking, aviation, and shipping sectors, while bolstering Eni’s financials and adding credibility to its co-investor-led growth strategy.

Eni’s CEO Claudio Descalzi stated that the deal marks a “significant step” in Eni’s energy transition journey, emphasizing its commitment to reducing carbon emissions.

What are your thoughts on Eni’s decarbonization strategy and partnership with KKR? Will it drive significant changes in biofuel production?