SOCAR Gets EU Approval to Buy Major Italian Fuel Company
The European Commission has approved the purchase of Italiana Petroli by Azerbaijan’s state oil company, SOCAR. This decision allows SOCAR to expand its presence in Europe’s energy market.
The European Commission confirmed that SOCAR can buy Italiana Petroli S.p.A. (IP) and its subsidiary MIP S.p.A. The Commission said the deal does not create any competition problems under European Union merger rules.
The approval was granted on 19 February under the EU Merger Regulation. The case was reviewed under a simplified procedure, which is usually used when there are limited competition risks. The Commission found that the two companies do not compete heavily in the same areas, so the deal will not harm fair competition in the European market.
Because there were no serious concerns, the EU did not require any special conditions or changes to approve the transaction.
What the Deal Includes
The agreement was signed in September 2025. Under the deal, SOCAR will buy 99.82% of Italiana Petroli’s shares from API Holding.
Italiana Petroli is one of Italy’s main energy companies in the downstream sector. It operates two oil refineries in Italy with a combined capacity to process around 10 million tonnes of crude oil per year.
The company also runs about 4,500 fuel stations across Italy. In addition, it is involved in fuel logistics, including supplying aviation fuel, lubricants, and bitumen.
The transaction is expected to be completed in the first quarter of 2026, once the remaining formal steps are finished.
In its review, the European Commission said the deal would not significantly reduce competition in the European Economic Area. It noted that there are only limited overlaps between SOCAR’s and Italiana Petroli’s activities, both horizontally and vertically.
A Strategic Step for Azerbaijan and Europe
Experts believe the deal is important not only from a business point of view but also from a strategic perspective.
SOCAR is already a key energy supplier to Europe. With this acquisition, Azerbaijan could strengthen its role in Europe’s energy system at a time when the European Union is trying to reduce its dependence on Russian energy.
Mahammad Mammadov, an energy expert from the Topchubashov Center in Baku, said the approval sends a strong political and economic signal. He explained that it shows Azerbaijan is seen as a reliable energy partner by Brussels.
He also mentioned the Black Sea Energy Cable project. In December, the project received Project of Mutual Interest status from the EU. This initiative aims to transport green electricity from Azerbaijan across the Black Sea to European markets. According to Mammadov, such projects show that Azerbaijan is becoming more important in Europe’s long-term energy security plans.
Positive Signal for Italy
In Italy, the deal is viewed as a positive sign for the country’s energy sector.
World Energy Council Italy Secretary General Michele Vitiello said the EU’s approval confirms that the transaction follows European competition rules. He said the investment shows confidence in Italy’s regulatory stability and energy market.
Vitiello added that Italy must remain open to foreign investment while also improving its energy independence. He said partnerships with reliable countries like Azerbaijan are important for ensuring stable and diversified energy supplies.
He also noted that stronger business ties between countries can improve cooperation and resilience during uncertain geopolitical times.
What Happens Next?
Now that EU approval has been secured, the focus will shift to how SOCAR integrates Italiana Petroli into its operations.
Market analysts will watch whether SOCAR invests more money into Italy’s refineries, retail network, and logistics system. They will also look at whether the company upgrades infrastructure or improves efficiency across its Italian assets.
While the European Commission’s decision ends the regulatory review process, the full industrial and strategic impact of the takeover will become clearer over the coming months as the ownership transfer is completed and integration begins.
Overall, the deal marks an important step for SOCAR’s expansion in Europe and highlights Italy’s continued appeal to international energy investors.
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