Eni Enlists JPMorgan for Potential Brindisi Cracking Plant Sale
Overview of Eni's Strategic Move and Industry Context
By Giuseppe Fonte and Francesca Landini
Eni's Engagement with JPMorgan
ROME, April 28 (Reuters) - Italy's Eni has hired JPMorgan to advise it on the potential sale of a cracking site in the south of the country, a source familiar with the matter said.
Eni and JPMorgan declined to comment.
Background on Brindisi Cracking Operations
Eni's cracking operations in Brindisi were mothballed last year as part of an overhaul of its loss-making chemicals business.
Investment and Business Transformation
State-controlled Eni has pledged to invest 2 billion euros ($2.34 billion) to relaunch its chemicals activities by moving into biofuels, plastic recycling and speciality chemicals.
Reduction of Petrochemical Exposure
Eni also wants to reduce its exposure to petrochemicals, including steam cracking, which have been under strain in Europe for several years due to ageing plants and high costs.
Government Involvement and Future Plans
Industry Minister's Meeting
Italy's industry minister met Eni executives on Tuesday to review progress on the restructuring, with a focus on Brindisi, the ministry said in a press release.
Selection of International Adviser
"Eni said it had selected a top-tier international adviser to identify a potential industrial buyer for the cracking operations," the ministry said, without disclosing details.
Additional Information
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(Reporting by Giuseppe Fonte in Rome and Francesca Landini in Milan, editing by Gavin Jones and Alexander Smith)
