Eni S.p.A. and KKR & Co. Inc. ( KKR ) shares are trading higher on Thursday. KKR agreed to acquire a 25% stake in Enilive for €2.938 billion ($3.172 billion).

The transaction includes a €500 million ($540 million) capital increase reserved for KKR and the purchase of €2.438 billion ($2.633 billion) in Enilive shares from Eni.

The transaction price values Enilive's total equity at €11.75 billion ($12.69 billion) post-transaction.

As part of the deal, Eni will complete a €500 million ($540 million) capital increase before finalizing the transaction to ensure Enilive is debt-free.

The investment improves Eni’s capital structure by reducing its net financial position while allowing Eni to maintain control and consolidation of Enilive.

This transaction marks a key advancement in Eni’s satellite model, designed to foster independent growth for high-potential businesses, attract new aligned capital, and provide market value transparency.

Eni CEO, Claudio Descalzi, said, "This agreement marks a significant further step in our business strategy related to the energy transition. Enilive, alongside Plenitude, is central to our commitment to providing decarbonized energy solutions and progressively reducing emissions from the end use of our products.”

”Both companies have attracted significant interest from leading international partners and achieved high market valuations, which indicates that our approach to the energy transition is appreciated."

This month, Eni disclosed the completion of its asset combination in the U.K., merging nearly all upstream assets, except for those in the East Irish Sea and CCUS activities, with Ithaca Energy plc.

Investors can gain exposure to KKR via FM Focus Equity ETF ( FMCX ) and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF .

Price Action: E shares are up 0.8% at $30.78 and, KKR shares are up 4.3% at $144.51 at the last check Thursday.

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Image created using artificial intelligence via Midjourney.