The European Commission cleared the acquisition of Italiana Petroli, paving the way for Baku to deepen its footprint in Europe’s downstream energy market.
A major energy deal between an Italian firm and the state oil company of Azerbaijan (SOCAR) has been confirmed by the European Commission.
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The EC approved the acquisition of Italiana Petroli S.p.A. (IP) and its subsidiary MIP S.p.A. by Azerbaijan’s SOCAR, citing that the transaction does not raise competition concerns under EU merger rules.
The decision was taken on 19 February under the EU Merger Regulation and cleared through simplified procedure by Brussels.
The European Commission’s merger review process, under EU regulations, is typically reserved for cases where market overlaps are limited and unlikely to distort effective competition within the internal market.
No structural or behavioural remedies were required as a condition for approval.
What the transaction covers
The agreement, signed in September 2025, allows SOCAR to acquire 99.82% of Italiana Petroli’s shares from API Holding.
According to official company sources, Italiana Petroli operates two refineries in Italy with a combined crude processing capacity of around 10 million tonnes per year.
The group also manages a nationwide retail network of approximately 4,500 fuel stations and is an active part of the logistics chain including supplies of aviation fuel, lubricants and bitumen distribution.
The transaction is expected to close in the first quarter of 2026, subject to the completion of remaining formalities.
In its assessment, the Commission found that the concentration would not significantly impede effective competition in the European Economic Area, citing “limited horizontal and vertical overlaps between the parties’ activities”.
Strategic dimension beyond merger control
While the clearance formally concludes the competition review phase, analysts say the deal carries broader strategic implications as the European Union continues efforts to diversify energy supply sources and infrastructure links.
Mahammad Mammadov, an energy expert and research fellow at the Baku-based Topchubashov Center, said the approval strengthens Azerbaijan’s structural role in Europe’s energy framework.
“Beyond expanding SOCAR’s commercial footprint in Europe, the European Commission’s approval of the acquisition reinforces Azerbaijan’s position as a reliable energy partner for Brussels at a moment when the European Union is accelerating its decoupling from Russian energy supplies,” he said.
Mammadov added that “the logic is reinforced by Brussels’ decision in December to grant Project of Mutual Interest status to the Black Sea Energy Cable, an infrastructure initiative designed to transmit Azerbaijani green electricity to European markets”.
“These developments position Baku not merely as a supplier, but as a structural pillar of Europe’s evolving energy security architecture,” he said.
Investment signal for Italy
In Italy, the transaction is being interpreted as a sign of confidence in the country’s downstream energy sector and regulatory stability.
Michele Vitiello, Secretary General of the World Energy Council Italy, said the Commission’s favourable assessment confirms the deal’s alignment with EU competition rules and broader market principles.
“This acquisition highlights the attractiveness of Italy’s energy sector for foreign investment and signals confidence in the country’s stability. The European Commission’s favourable assessment further confirms that this is the path being pursued, fully consistent with the EU framework,” he said.
Vitiello added that maintaining openness to international capital, within a free-market logic, remains essential alongside strengthening Italy’s energy autonomy.
“In this context, strategic alliances and diversification with reliable partner countries, including key energy suppliers such as Azerbaijan, which plays a central role in the broader Mediterranean energy architecture, remain fundamental to consolidating supply security and system flexibility,” he continued.
He noted that stronger commercial ties between partner countries can also reinforce cooperation and resilience in a complex geopolitical environment.
What comes next?
With EU approval secured, attention now turns to operational integration.
Market observers will monitor how SOCAR incorporates Italiana Petroli’s refining and retail assets into its broader European portfolio, and whether the acquisition translates into additional capital expenditure, infrastructure upgrades or logistics optimisation across the Italian market.
While Brussels’ decision closes the competition chapter, the industrial and strategic implications of the takeover are likely to unfold in the months ahead as ownership formally transfers and integration begins.
