Eni, the Italian oil giant, announces that the negotiations with the U.S. investment fund SK Capital over the sale of a majority share in Versalis S.p.A. have been terminated due to an impossibility to reach a resolution on certain issues, including the future governance of the company. Therefore, starting from the second quarter results, Eni will fully consolidate Versalis within the group’s accounts.
According to the experts, the search for an investor is necessary for Versalis in order to sell at least 70% of the company and provide capital for 1.2 billion euro for the shift to green chemistry, after burning since 2000 approximately 5.8 billion.
In just a short period of time, Versalis has reported positive results after having suffered significant losses in recent years. These results were visible in the first nine months of 2015. The transformation plan is centred on high value products (specialities), on efficiency improvements and the streamlining of operations, on international development through strategic partnerships with important global operators, and on the development of green chemicals.
However, the continuously changing global business environment still shows structural limitations, despite significant recent efforts across the industry. For this reason, Eni was seeking to identify a partner for Versalis, in order to strengthen the business further and to ensure the continuity of its investment and restructuring plans. Such a partner must have the availability and expertise to enable Versalis to either broaden or exchange its technology portfolio, so as to generate new development and investment opportunities.
by Giorgio Zani