A consortium of Japanese Mitsubishi Corporation (80%) and Chubu Electric Power Co., Inc. ( (20%), Japan’s 3rd largest energy company, will take over Dutch energy company Eneco. Eneco and the shareholders’ committee, consisting of the municipalities of Rotterdam, The Hague, Dordrecht, Lansingerland, Capelle aan den IJssel, Molenlanden, Heemstede and Achtkarspelen, have agreed on the proposed sale of all shares in Eneco for a total equity value of EUR 4.1 billion.
The outcome may come to a surprise as two other names were frequently mentioned in the news lately, being Rabobank and Shell. According to Eneco, the consortium led by Mitsubishi Corporation offered the best terms and conditions including price and deal certainty and will continue and strengthen Eneco’s sustainable strategy.
Ruud Sondag, CEO of Eneco: “With the consortium of Mitsubishi Corporation and Chubu we have found shareholders that support Eneco’s strategy for a hundred per cent. 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 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 on Mitsubishi Corporation and Chubu as future shareholders and has rendered an 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.”
Takehiko Kakiuchi, CEO of Mitsubishi Corporation: “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.”
The consortium will further expand the business of Eneco internationally whereby Eneco remains intact as an integrated and independent operating Dutch energy company with its own branding and head office remaining in Rotterdam. The consortium will become its shareholders, through a newly formed entity, under the direction of the current board of management, supplemented by Hans Peters, Chief Customer Officer (COO) with Eneco, and a Mitsubishi Corporation representative (to be announced). The employment and employment conditions remain unchanged.
Access to new offshore wind markets
Through the take over Eneco will become the European centre for all energy-related activities of Mitsubishi Corporation. Mitsubishi Corporation intends to transfer part of its offshore wind activities to Eneco, in total more than 400 megawatt. Eneco will get access to new US and Japanese offshore wind markets.
The proposed transaction will be definitive if shareholders together holding at least 75% of the issued and outstanding share capital of Eneco decide to sell their shares. The shareholder will receive a detailed explanatory document with the offer. They will have a 40-working day accepantance period to sell their shares. This can be extended with an additional 20 working days if the 75% has not been met. The consortium will fund the proposed transaction fully by using existing cash resources. The transaction is still subject to approval of the relevant authorities, including the Dutch minister of Economic Affairs and Climate Policy.