Eneco, a renowned Netherlands based sustainable energy firm, reportedly stated that Japan’s Mitsubishi Corp would be buying the company for €4.1 billion, beating competing bids from private equity company KKR and oil & gas firm Shell.

Eneco, focused on renewable energy and owned by approximately 44 Dutch municipalities, further claimed that it has been encouraged to make this move by Mitsubishi’s post-acquisition plans to allow Eneco to continue its strategy and to retain its corporate identity.

The deal, supported by Eneco’s boards as well as a committee representing its shareholders, still needs to be approved by the beginning of the coming year by the company’s municipal investors.

The energy-based firm, Eneco, reportedly stated that Mitsubishi’s group has proposed an offer that is best for its employees, shareholders as well as other stakeholders.

New Energies Director, Maarten Wetselaar stated, Mitsubishi’s success in this endeavor seems to be a significant blow for Shell, who wants to become an important power generator by 2030. Wetselaar further stated that Shell will continue to look for possibilities in the energy transition.

Shell in its bid to buy Eneco had partnered with Dutch pension fund manager PGGM and had plans on spending an average of $2 billion or $3 billion annually on energy transition investments from the start of 2021.

Meanwhile, KKR, a renowned private equity company, which has also been defeated in the bid, had partnered with Rabobank, a Dutch based financial services firm for the bid.

Eneco Chief Financial Officer, Guido Dubbeld stated that Mitsubishi’s consortium had plans to invest €1 billion in Eneco’s operations in the coming three years in Germany, Belgium and the Netherlands.

Dubbeld added that the investment will mostly be in the Netherlands, rather less in solar, mostly in wind.

The agreement would give Mitsubishi an 80% stake in Eneco and give 20% to its partner Chubu.

Takehiko Kakiuchi, Chief Executive, Mitsubishi, reportedly stated that, Eneco perfectly fits with the company’s current energy activities and provides a platform to grow across the European market.

Mitsubishi will combine the operations of Eneco with its existing 400 MW of Dutch coastal wind power portfolio.

Source Credits: https://www.reuters.com/article/us-eneco-m-a-mitsubishi/japans-mitsubishi-beats-shell-to-buy-dutch-power-firm-eneco-idUSKBN1XZ0SZ