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Eni & Its Plastics Unit Novamont Face 32M Euro Market Abuse Fine
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Key Takeaways
Italy fined Novamont 30.4M euros and Eni 1.7M euros for exclusionary practices in bioplastic bag materials.
Novamont allegedly sidelined rivals in the Italian market for light and ultra-light plastic bag materials.
Novamont disputes the ruling and plans a legal challenge, defending its strategy and product quality.
Italy’s competition watchdog has slapped energy giant Eni S.p.A (E - Free Report) and its bioplastics unit, Novamont, with fines exceeding €32 million for abusing a dominant market position in the production of plastic bags, according to a Reuters report.
Regulator Finds Abuse in Bioplastics Market
Per the report, the Italian Antitrust Authority announced the penalties on Tuesday following a probe into Novamont’s business conduct. The regulator found that between Jan. 1, 2018, and Dec. 31, 2023, Novamont was engaged in exclusionary practices aimed at sidelining competitors in the domestic markets for raw materials used in producing light and ultra-light bags for fruit and vegetables.
While Eni received a fine of €1.7 million, Novamont — majority owned by Eni until recently —was hit with penalties totaling €30.4 million.
Novamont Rejects Findings, Vows Legal Challenge
In response to the ruling, Novamont said that it firmly disagrees with the decision and plans to challenge the findings in court. The company stated it had clearly demonstrated that its business conduct was fair and focused on safeguarding innovation, quality and value in the Italian market.
Novamont added that it would assert its rights through judicial proceedings, defending its commercial strategy as one grounded in protecting product quality and environmental integrity.
Backdrop of Rising Scrutiny
The ruling highlights increasing scrutiny of competition practices within Italy’s bioplastics and sustainability-driven packaging sectors. As environmental regulations tighten across Europe, companies like Novamont have found themselves at the intersection of innovation and regulatory oversight.
Eni has not issued a separate comment on the decision yet.
E’s Zacks Rank & Key Picks
E currently carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at a few better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , W&T Offshore, Inc. (WTI - Free Report) and Oceaneering International, Inc. (OII - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
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Eni & Its Plastics Unit Novamont Face 32M Euro Market Abuse Fine
Key Takeaways
Italy’s competition watchdog has slapped energy giant Eni S.p.A (E - Free Report) and its bioplastics unit, Novamont, with fines exceeding €32 million for abusing a dominant market position in the production of plastic bags, according to a Reuters report.
Regulator Finds Abuse in Bioplastics Market
Per the report, the Italian Antitrust Authority announced the penalties on Tuesday following a probe into Novamont’s business conduct. The regulator found that between Jan. 1, 2018, and Dec. 31, 2023, Novamont was engaged in exclusionary practices aimed at sidelining competitors in the domestic markets for raw materials used in producing light and ultra-light bags for fruit and vegetables.
While Eni received a fine of €1.7 million, Novamont — majority owned by Eni until recently —was hit with penalties totaling €30.4 million.
Novamont Rejects Findings, Vows Legal Challenge
In response to the ruling, Novamont said that it firmly disagrees with the decision and plans to challenge the findings in court. The company stated it had clearly demonstrated that its business conduct was fair and focused on safeguarding innovation, quality and value in the Italian market.
Novamont added that it would assert its rights through judicial proceedings, defending its commercial strategy as one grounded in protecting product quality and environmental integrity.
Backdrop of Rising Scrutiny
The ruling highlights increasing scrutiny of competition practices within Italy’s bioplastics and sustainability-driven packaging sectors. As environmental regulations tighten across Europe, companies like Novamont have found themselves at the intersection of innovation and regulatory oversight.
Eni has not issued a separate comment on the decision yet.
E’s Zacks Rank & Key Picks
E currently carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at a few better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , W&T Offshore, Inc. (WTI - Free Report) and Oceaneering International, Inc. (OII - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.