MILAN—Talks between Italian energy giant Eni and U.S. investment fund S.K. Capital over the sale of a majority share in Versalis have ended without a deal.
In a statement, Veraslis parent company Eni, said negotiations were “terminated due to an impossibility to reach a resolution on certain issues.”
The “future governance” of the company, said Eni, was one of the outstanding issues.
Eni, which had excluded Versalis in its quarterly reports due to divestment plans, said that it would “fully consolidate” its chemicals arm within the group's accounts starting from its second quarter results.
Eni announced in February that it was holding talks with “an industrial partner” which it said had to “support Eni in implementing the industrial plan designed to upgrade this business [Versalis].”
Eni also stated that it intended to retain a “significant stake” in the company within a partnership to “ensure its objectives are successfully met”.
The Italian energy company said that in choosing the partner, it would take into account: investment plans; retention of industrial layout for at least five years; maintenance of current employment levels for at least three years; and retention of the company's headquarters in Italy.