Eni SpA, the Italian energy giant, has agreed to sell a 20 percent stake in its renewable energy subsidiary, Plenitude, to Ares Management’s Alternative Credit arm for approximately €2 billion. The deal pegs Plenitude’s equity value at €10 billion and its enterprise value at over €12 billion, marking the latest phase in Eni’s strategy to draw external capital into its energy transition ventures reuters.combloomberg.com.
Deal Details and Valuation
Eni and Ares finalized terms after exclusive talks that began in March, settling on the midpoint of a €9.8–10.2 billion valuation range. Ares Alternative Credit will acquire the stake directly from Eni, pending customary regulatory approvals. The transaction follows Eni’s 2023 sale of a 10 percent Plenitude stake to Energy Infrastructure Partners and its divestment of a 25 percent share in biofuels unit Enilive to KKR eni.comreuters.com.
Plenitude’s Growth Path
Plenitude operates in more than 15 countries, with over 4 GW of renewable capacity—spanning solar, wind, and battery storage—and serves more than 10 million retail customers. It also manages a network of 21 500 electric vehicle charging points. The subsidiary aims to scale to over 8 GW by 2027 and surpass 15 GW by 2030, reflecting its rapid expansion ambitions in low-carbon energy and mobility services pv-tech.orgen.wikipedia.org.
Strategic “Satellite Model” Approach
Eni has adopted a “satellite model” that spins off specialized units to attract third-party investment while maintaining strategic ties. This structure enables Eni to fund renewables growth without tapping into traditional oil and gas cash flows. According to Stefano Goberti, CEO of Plenitude, the deal “endorses the quality of our approach, which blends economic and environmental sustainability in an integrated business model” eni.com.
Market Implications
Ares Management Alternative Credit, which oversees roughly $43 billion in assets, strengthens its clean energy portfolio through this acquisition. Joel Holsinger, Ares partner and co-head of alternative credit, said the investment leverages Ares’s expertise in asset-based finance and renewables infrastructure to deploy “flexible capital at scale.” The partnership underscores growing investor appetite for stable, yield-oriented renewable assets businesswire.com.
Analyst Take
Market observers note that Eni’s consistent spin-off strategy stands out in an era when many oil majors have scaled back low-carbon investments. By monetizing Plenitude at a solid valuation, Eni demonstrates how integrated energy service models can deliver attractive returns and environmental benefits. Analysts believe this transaction may prompt similar deals across Europe as companies seek to fund green growth without diluting core operations.
Looking Ahead
With regulatory clearances pending, Eni and Ares aim to close the deal in the coming months. Plenitude will continue its investments, targeting annual capital expenditures of around €1.2 billion over the next five years to bolster its renewable and EV charging networks. The success of this sale could influence Eni’s future divestment plans and encourage further partnerships in its energy transition portfolio.
Personal Analysis
I see this deal as a clear signal that energy giants can finance green growth by crafting stand-alone units that appeal to infrastructure investors. Plenitude’s solid customer base and ambitious expansion targets make it a compelling asset, and Ares’s backing brings both capital and credibility. Going forward, I expect more oil and gas firms to replicate Eni’s model, striking a balance between shareholder returns and sustainable investments—all without overburdening legacy cash flows.
