KKR & Co. is increasing its investment in Eni SpA’s mobility unit, Enilive, to 30%, further solidifying the Italian energy giant’s €8 billion ($8.4 billion) asset divestment strategy through 2027. This move underscores KKR’s confidence in Enilive’s growth potential and aligns with Eni’s broader strategic goals.
KKR’s latest investment involves acquiring an additional 5% stake in Enilive for €587.5 million, valuing the mobility unit at €11.75 billion. This follows KKR’s initial 25% acquisition in October, a deal anticipated to finalize next month. The investment firm secured backing from a global consortium, including pension funds, demonstrating the widespread appeal of Enilive’s business model.
This transaction represents a significant step in Eni CEO Claudio Descalzi’s “satellite model” strategy. This approach focuses on either spinning off entire business segments or forming strategic partnerships with external investors to optimize Eni’s portfolio and unlock value. The Enilive deal exemplifies this strategy in action.
Eni’s commitment to its asset reallocation plan is further highlighted by its November sale of an additional stake in its renewables unit, Plenitude, to Energy Infrastructure Partners AG. This increased the Swiss infrastructure group’s ownership in Plenitude to 10%, demonstrating Eni’s proactive approach to reshaping its portfolio.
Enilive operates across several key sectors within the energy transition, including bio-refining, biomethane production, and innovative smart mobility solutions such as car-sharing. These areas are poised for significant growth as the global economy shifts towards more sustainable energy sources and transportation models. KKR’s increased investment reinforces the attractiveness of these sectors and Enilive’s strong position within them.
In conclusion, KKR’s decision to increase its stake in Enilive to 30% signals a strong vote of confidence in the Italian energy company’s strategic direction and the future prospects of its mobility unit. This deal, valued at €11.75 billion, not only benefits both companies financially but also underscores the growing importance of sustainable energy and mobility solutions in the global market. This strategic partnership positions Enilive for continued growth and innovation, while simultaneously allowing Eni to further its ambitious asset divestment plan.
