Mitsubishi and Chubu Complete EUR 4.1 Bn Acquisition of Eneco

Mitsubishi and Chubu Electric have officially acquired all shares of Eneco through its joint venture for a total value of 4.1 billion euros

In November 2019, Mitsubishi Corporation (MC) and Chubu Electric were selected as the preferred buyers in a bid for the Dutch Energy Company – Eneco. Both firms had since been completing the acquisition procedures, and on March 25, 2020, the two firms have announced that they have officially acquired all shares of Eneco through its joint venture in the Netherlands, special purpose company Diamond Chubu Europe. The total value of this acquisition is 4.1 billion euros (500 billion yen).

Mitsubishi Corporation (80 percent) and Chubu (20 percent) funded the proposed transaction fully by using existing cash resources. Mitsubishi and Chubu are shareholders with a long-term horizon and are in full support of strengthening Eneco’s sustainable strategy, the consortium will further expand the business internationally.

Eneco is an integrated energy company that is actively engaged in renewable power generation projects. It also offers innovative solutions that make it easier for customers to make the switch to more sustainable and smarter energy consumption in the retail area.

By taking advantage of Eneco’s technological strengths and know-how in renewable energies, MC is aiming to accelerate its own renewable developments in Europe and around the world. MC is seizing this acquisition as an opportunity to help reduce greenhouse emissions and realize its vision of simultaneously generating economic, societal and environmental value through its businesses.

By combining its accumulated expertise in the energy sector with Eneco’s unique strengths, Chubu is aiming for mutually beneficial business-model evolution, through which it can create synergies in its energy operations, both in Japan and around the world.

The growth of renewable energies, which has led to a rise in small-scale decentralized energy resources, the ongoing development of storage batteries and digital technologies, are changing the face of power generation. Both MC and Chubu are excited about leveraging that growth to help improve our quality of life, proceed with low-carbon societies, and find solutions to some of the world’s most serious problems.

Takehiko Kakiuchi, CEO of Mitsubishi Corporation had said at the time that “we are impressed by Eneco’s achievements and its market position and intend to further build on that position. Eneco and we have been successfully working together since 2012 in a long-term strategic partnership and as a result, have a proven track record of successful collaboration on various renewable energy projects. We share the same long-term vision of “Everyone’s sustainable energy”, have a good cultural fit and we firmly believe that Eneco is well-positioned to continue to play a leading role in the energy transition.

Eneco fits in perfectly with our current energy activities and provides us with a platform to further grow in the European market in which we intend to have a leading position in the energy transition. We strongly believe that we are the best partner for all stakeholders of Eneco and look forward to jointly further develop a sustainable strategy.”

Mitsubishi plans to transfer part of its offshore wind activities (more than 400 megawatts) to Eneco.