Mitsubishi-Chubu Consortium to buy Eneco for EUR 4.1 bn

Eneco and a consortium of Mitsubishi and Chubu have reached an agreement on the proposed sale of all shares in Eneco for a total value of EUR 4.1 billion.

Netherlands based producer and suppliers of natural gas, electricity and heat, Eneco has announced that the shareholders’ committee, Eneco and a consortium of Mitsubishi Corporation and Chubu have reached an agreement on the proposed sale of all shares in Eneco for a total equity value of EUR 4.1 billion.

Mitsubishi Corporation (80 percent) and Chubu (20 percent) will fund 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 will become the European centre for all energy-related activities of Mitsubishi Corporation, a global enterprise with great ambitions in the area of the energy transition, and Chubu, the 3rd largest Japanese energy company with about 10.2 million retail customer contracts and focussed on non-fossil energy sources.

Takehiko Kakiuchi, CEO of Mitsubishi Corporation said 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.

Through Mitsubishi Corporation, Eneco will get access to new offshore wind markets in the United States and Japan. Vice versa, Mitsubishi Corporation and Chubu will obtain insight and experience in improving the sustainability of the energy supply in their home markets. Between mid-2019 and mid-2024, Eneco will have invested at least EUR 1 billion in renewable generation assets in the Netherlands, Germany, and Belgium.

Ruud Sondag, CEO of Eneco said that with the consortium of Mitsubishi Corporation and Chubu they have found shareholders that support Eneco’s strategy for a hundred percent. Our partner for several years, Mitsubishi Corporation, will now become our largest shareholder. And, equally important: Eneco will remain intact as an integrated and independent Dutch energy company.

“We will receive ample opportunities for expansion both inside and outside of Europe. I am proud that the shareholders’ committee, supervisory board and board of management have jointly and in unanimity reached this positive result. At least as important is that the central works council also has a positive view of Mitsubishi Corporation and Chubu as future shareholders and has rendered unconditional positive advice. We are looking forward to continuing to work on the energy transition and a sustainable future, together with our customers, employees, partners, governments and new shareholders.”

Picture: GE