EXCLUSIVE-SOCAR close to buying oil refiner Italiana Petroli, sources say

By Francesca Landini and Valentina Za

MILAN, Sept 15 (Reuters) - Italiana Petroli's founding family is nearing the sale of the oil refiner to State Oil Company of Azerbaijan (SOCAR) in a deal that would hand the group control of one of Italy's largest petrol station networks, three sources said.

A deal with SOCAR is expected to be signed as early as Monday, two of the people said, barring any last-minute postponement.

The sources did not disclose the financial terms of the agreement.

People close to the matter had previously told Reuters Italy's Brachetti-Peretti family was seeking an enterprise value of around 2.5 billion euros ($2.9 billion) for their company, which holds some 500 million euros in cash.

SOCAR and Italiana Petroli did not respond to requests for comment.

SOCAR is being advised by Italy's Intesa Sanpaolo IMI CIB with UniCredit advising the owner of IP.

IP has a total refining capacity of around 200,000 barrels per day and operates a network of more than 4,500 fuel stations. It also owns important storage and transport assets in Italy, including for jet fuel.

Last year it posted an adjusted core profit of nearly 500 million euros.

The expected deal would follow the sale by Italy's Moratti family of its controlling stake in oil refiner Saras to global commodity trading house Vitol last year.

These transactions underscore a broader trend of private investors retreating from Europe's refining sector, which has become increasingly volatile.

The acquisition would boost SOCAR's presence in the Mediterranean fuel market. The company already owns the 200,000 bpd STAR refinery in Turkey.

IP currently owns a refinery in Ancona in eastern Italy, as well as the SARPOM refinery in Trecate in the north. It also has a tolling contract for the Alma refinery in Ravenna.

IP increased its refining and fuel storage capacity in 2023 when it finalised the acquisition of Exxon Mobil's XOM.N Italian assets.

($1 = 0.8524 euros)