Italy’s Eni International and its Norwegian unit Var Energi ASA plan to buy UK-headquartered Neptune Energy for $4.9 billion.

Neptune Energy is an independent exploration and production (E&P) company with operations across Europe, North Africa, and Asia Pacific.

As part of the agreement, Var Energy will purchase Neptune’s activities in Norway, Neptune said in a statement.

However, the German business will continue to be owned and operated by Neptune as a standalone group.

The existing upstream portfolios of the companies are low carbon intensity gas-focused, providing Eni and Var Energi with increased scale in growth areas and high-value markets and enhanced decarbonisation opportunities.

“The transaction offers a new phase for Neptune, with significant growth opportunities supporting energy security and the energy transition,” said Sam Laidlaw, Executive Chairman of Neptune Energy.

The transaction is expected to close by the end of first quarter of 2024.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)