Eni, the Italian supermajor oil company, has officially confirmed its rumoured takeover of London-based exploration and production group Neptune Energy for US$4.9bn (£3.85bn).
The two companies have agreed on a sale and purchase agreement, with Eni-owned Vår Energi simultaneously signing a deal for Neptune's Norwegian assets.
Though necessary regulatory and governmental clearances are still pending, it is expected that the deal will close by the end of the first quarter of 2024.
Founded by Sam Laidlaw, Neptune Energy is owned by private equity groups CIC, Carlyle Group and CVC Capital Partners.
Its North Sea assets, including the UK’s biggest gas field Cygnus, as well as stakes in the Seagull and Isabella projects, will be included in the takeover
Operations in Germany will remain under the ownership of the existing shareholders.
In a press statement, the boards of Eni, Vår Energi and Neptune said the proposed combinations “will enhance their technical and financial capabilities to provide energy security and participate in the energy transition”.
Laidlaw, executive chairman of Neptune, stated: “Since Neptune’s formation in 2018, we have invested in the business and transformed the organisation, resulting in material improvements in safety, operational performance and cost efficiency.
“I am incredibly proud of Neptune’s achievements over the past five years – and the hard work and dedication of so many people across our organisation, who, together with our shareholders, have contributed to the growth and success of the business.”
Claudio Descalzi, Eni’s chief executive, said that the deal delivers to Eni “a high-quality and low-carbon-intensity portfolio with exceptional strategic and operational complementarity”.
Descalzi suggested the acquisition supports Eni’s dividend commitments and increases the possibility for share buybacks down the line.