KKR raises Enilive stake to 30% with $614 million deal

U.S. fund KKR buys an additional 5% stake in Eni’s biofuel unit Enilive, increasing its total holding to 30%.

The logo of Italian energy company Eni is seen at a gas station in Rome, Italy, on August 16, 2018. Photo by Max Rossi/Reuters

By Alana Salsabila and Clarisa Sendy

U.S. private equity firm KKR has signed an agreement with Italy’s Eni to acquire an additional 5% stake in Enilive, the energy giant’s biofuel business, for 587.5 million euros ($614.17 million). The deal, announced on Tuesday, increases KKR’s total stake in the company to 30%, reinforcing the firm’s commitment to the biofuel sector.

KKR expands Enilive investment

The latest agreement follows KKR’s October deal to purchase a 25% stake in Enilive. That transaction, which valued Enilive at 11.75 billion euros, is expected to close by the end of March. The new acquisition maintains the same valuation structure, demonstrating the continued attractiveness of Eni’s biofuel business.

Enilive is a key part of Eni’s transition strategy as the company seeks to decarbonize its product portfolio. By bringing in co-investors, Eni aims to raise funds for sustainable energy initiatives while retaining control over its core operations.

Eni’s satellite strategy and decarbonization efforts

Eni has pursued a "satellite strategy" to attract strategic investors into high-growth businesses like Enilive. This approach allows the company to secure capital for its energy transition plans without fully divesting from key assets.

"KKR's additional investment confirms the attractiveness of Enilive to the market," said Francesco Gattei, Eni’s chief transition and financial officer.

The investment aligns with KKR’s broader strategy of expanding its presence in sustainable energy sectors. The firm has been increasing its investments in renewable energy and low-carbon technologies, recognizing the long-term potential of companies involved in biofuels and alternative energy sources.

Financial advisors and market impact

Mediobanca served as Eni’s financial adviser for the transaction. The deal highlights growing investor interest in the biofuel sector, as energy companies seek to balance profitability with sustainability goals.

With the additional 5% stake, KKR strengthens its position in Enilive, signaling confidence in the future of biofuels as a critical component of the global energy transition. The deal is expected to have a positive impact on Enilive’s expansion efforts, further solidifying its role in Eni’s broader decarbonization strategy.