Azerbaijan's state-owned oil company Socar is close to acquiring Italian refiner API, a source close to the matter told Argus.
"The final legal details are being worked out and it's just a question of time, possibly today," the source said.
API, advised by UniCredit, is owned by Italy's Brachetti Peretti family. It operates two refineries in Italy — the 126,500 b/d Trecate facility and the 83,000 b/d Falconara plant — and holds a tolling contract at the 9,500 b/d Ravenna refinery.
The company also manages a retail network of more than 4,600 service stations across the country.
The transaction includes the refineries and the retail network, the source said.
UAE-based Bin Butti Group had also expressed interest in acquiring API but did not secure financing in time to submit a binding offer, the source added.
The deal value remains unclear, but recent press reports suggest the Brachetti Peretti family is seeking an enterprise value of around €2.5bn ($2.9bn).
Completion will require approval from the Italian government, which holds "golden power" rights over strategic assets such as energy infrastructure.
Azerbaijan is a key energy partner for Italy, supplying gas via the Trans Adriatic Pipeline.
The pending sale follows last year's acquisition of Italy's 300,000 b/d Saras refinery by trading firm Vitol and the earlier sale of the 320,000 b/d Priolo refinery to private equity-backed GOI Energy.
Neither API nor Socar have responded to requests for comment.
