SOCAR is close to acquiring oil refiner Italiana Petroli according to sources

Three sources claim that the founding family of Italiana Petroli is close to selling the oil refinery to State Oil Company of Azerbaijan. This would give the group control of Italy's biggest petrol station network.

Two people have said that a deal could be signed with SOCAR as soon as Monday, barring any last minute postponement.

Sources did not reveal the financial terms of this agreement.

According to sources close to the situation, Brachetti-Peretti's family in Italy is seeking a value of 2,5 billion euros ($2,9 billion) for its company. The cash held by their company amounts upto 500 million euros.

SOCAR and Italiana Petroli have not responded to our requests for comment.

SOCAR's IP is advised by UniCredit, while Intesa Sanpaolo IMI CIB in Italy advises SOCAR.

IP operates more than 4,500 fuel station and has a refining capacity totaling around 200,000 barrels a day. It owns significant storage and transportation assets in Italy including jet fuel.

The adjusted core profit for the year was nearly 500 millions euros.

This deal follows the sale of Italy's Moratti Family's controlling stake in oil refiner Saras by global commodity trading company Vitol to Italy last year.

These transactions reflect a trend where private investors are retreating from Europe’s refining industry, which is becoming increasingly volatile.

SOCAR will now have a stronger presence on the Mediterranean fuel markets. The company owns a STAR refinery with a capacity of 200,000 bpd in Turkey.

IP owns the SARPOM refinery at Trecate, in the north. It also has a refinery located in Ancona, in the east of Italy. It has also a tolling agreement for the Alma refinery, located in Ravenna.

IP's capacity for fuel storage and refining increased in 2023 after it acquired Exxon Mobil Italy assets.

(source: Reuters)