Novamont: A European Leader in Compostable Plastics
Novamont is one of Europe’s leading producers of biodegradable and compostable plastics, best known for its Mater-Bi family of bioplastics.
The company has played a major role in the development and commercialisation of compostable plastics, particularly for compostable carrier bags, food-waste collection bags, agricultural applications and food-service packaging.
Its importance is reflected in its market share. According to the Italian Competition Authority (AGCM), Novamont was the largest European supplier of polymers for the production of compostable products between 2018 and 2023. Its European market share ranged between approximately 40% and 50% for much of this period, standing at 36% in 2023.
Novamont’s position has been particularly strong in Italy. The Italian market itself represents approximately 55% of European consumption of compostable polymers, making Novamont’s position in its domestic market especially significant.
Through its technology, patents, Mater-Bi brand and established commercial presence, Novamont has become a major European player in compostable plastics and a historically dominant player in important segments of the Italian market.
Eni and Versalis Ownership
Versalis, the petrochemical company fully owned by Eni, had been a longstanding shareholder in Novamont and held 36% of the company before the full acquisition.
On 18 October 2023, Versalis completed the acquisition of the remaining 64% of Novamont, bringing Novamont under 100% ownership of Versalis and, ultimately, the Eni group.
According to Eni’s financial reporting, the consideration paid for the remaining 64% was €404 million. The previously held 36% stake was assigned a fair value of €227 million, resulting in an overall price consideration of approximately €631 million for accounting purposes.
The acquisition also involved the assumption of approximately €207 million in net financial liabilities.
Financial Position of Versalis and Novamont
The financial background of the Versalis–Novamont relationship deserves particular attention.
Versalis has been structurally loss-making for several years. In 2023, the Versalis group reported a net loss of approximately €1.29 billion, followed by another €771 million loss in 2024. By the end of 2024, its consolidated shareholders’ equity had fallen to approximately negative €316 million.
Despite this difficult financial position, Versalis proceeded with the acquisition and financing of Novamont. Following the transaction, Novamont became a 100% subsidiary of Versalis, and its results were consolidated into the Versalis group.
At the end of 2024, Versalis carried its investment in Novamont at approximately €698 million, while Novamont’s corresponding IFRS net-equity value was reported at approximately €564 million.
Novamont has also received substantial intra-group financing, including financing from Versalis. The financial relationship between a structurally loss-making parent company and its subsidiary therefore deserves scrutiny, particularly when assessing the economics of the acquisition and the financial performance of Novamont within the wider Eni group.
EU Public Funding
Novamont has also been a significant beneficiary of European public funding through the Bio-based Industries Joint Undertaking (BBI JU) and its successor, the Circular Bio-based Europe Joint Undertaking (CBE JU).
According to information provided directly by CBE JU, Novamont participated in 26 EU co-funded projects and received a total of €23.49 million in BBI JU/CBE JU co-funding. The funding was provided as partial reimbursement of eligible costs associated with research and innovation projects.
Therefore, alongside investment and financing from within the Eni–Versalis group, Novamont has received more than €23 million in EU-backed public funding for its research and innovation activities.
Competition and Market Dominance
Novamont’s market position has also attracted the attention of competition authorities.
In June 2025, the Italian Competition Authority (AGCM) concluded that Novamont had abused its dominant position in Italian markets for bioplastic raw materials used in lightweight and ultra-lightweight bags.
The Authority imposed a fine of approximately €30.36 million on Novamont, together with an additional €1.70 million fine imposed jointly and severally on Novamont and Eni.
According to the AGCM, the conduct concerned exclusionary practices targeting competitors and covered at least the period from 1 January 2018 to 31 December 2023.
The combination of market leadership, Eni ownership, intra-group financing, substantial EU public funding and the findings of the Italian Competition Authority provides important context for understanding Novamont’s position within the European compostable-plastics industry.
