Eni S.p.A. (BIT:ENI) is in discussions with funds interested in buying a minority stake in the Italian energy group's Novamont unit (Novamont S.p.A.) in a deal that could value the bioplastic maker at around EUR 1 billion ($1.1 billion), a source close to the matter said. Eni added Novamont to its chemical division earlier in the year 2023, by acquiring in October the 64% of the company it did not already own from private equity funds Investitori Associati II SA and NB Renaissance Partners for an undisclosed price. Teaming up with an investor could now help Eni grow Novamont more quickly, improving the sustainability credentials of its entire chemical business by increasing its exposure to the circular economy sector.

The source said that investors interested in the potential deal included Norway's private equity fund HitecVision AS (OTCNO:HITV) and U.S. fund Blackstone Inc. (NYSE:BX). The discussions with potential investors are at a preliminary stage and Eni has taken no final decision on the size of the stake it could sell. Eni and Blackstone declined to comment on the issue.

HitecVision did not immediately respond to a request for comment. The source said that Italian bank UniCredit S.p.A. (BIT:UCG) was advising Eni over Novamont. UniCredit declined to comment.