Mitsubishi, Chubu Named Preferred Buyer In Bid For European Retail Energy Supplier
November 25,2019
Mitsubishi Corporation (MC) and Chubu Electric Power Co., Inc. (Chubu) have been selected as the preferred buyers in a bid for the Dutch Energy Company Eneco.
Through their joint establishment of a special purpose company in the Netherlands called Diamond Chubu Europe B.V., MC and Chubu expect to acquire up to 100% of Eneco’s shares at a value of 4.1 billion euros.
Mitsubishi Corporation (80%) and Chubu (20%) will fund the proposed transaction fully by using existing cash resources
Among its businesses, Eneco operates as a retail energy supplier in several European markets. Its brands include an app-based supplier, and also offers smart home and EV services
Shell had been among the competing bidders for Eneco
Active mainly in the Netherlands, Belgium and Germany, Eneco boasts the second largest share of the Dutch energy market, with a portfolio that includes an installed capacity of approximately 1,200 megawatts in renewable energy assets. Its businesses include power generation (partly via its renewable assets), the trading and sale of both gas and electricity, and the supply of district heating systems.
Eneco will become the European centre for all energy-related activities of Mitsubishi Corporation
"By enhancing its relationship with Eneco and leveraging the latter’s strengths as a developer and operator of renewable assets, MC plans to accelerate its own initiatives in renewable energy, which are in line with its mission to help realize more sustainable communities by generating economic, societal and environmental value. As stated in its "Midterm Corporate Strategy 2021", one of MC’s overarching objectives is growth through business management. The company is taking advantage of its vast network and Eneco’s customer base to develop new products and services related to energy management," Mitsubishi said
"Under the Chubu’s Management Vision, Chubu will accelerate its initiatives leading to the creation of Community Support Infrastructure. The company’s aim is to deliver not only first-rate energy services, but also 'value that expands by being connected', a message that is underpinned by the concepts of digitization, customer centered services and low carbon societies. By realizing that aim, Chubu is helping to address important societal challenges and enhancing its value as a total energy service corporate group. By joining forces with Eneco and developing mutual business models, Chubu is now positioned to augment its expertise with that of a trailblazer in Europe’s energy market which leads the world in deregulations, and aiming to create synergies throughout our energy businesses, both here in Japan and around the world," Chubu said
"The growth of renewable energies has led to a rise in small-scale, decentralized energy resources, which combined with the ongoing development of storage batteries and digital technologies is changing the face of power generation. Eneco is a progressive and comprehensive energy provider that is creating customer-focused services through the application of green energies, and increasingly AI and IoT. Both MC and Chubu are excited about leveraging that growth to help improve our quality of life, transition us to low-carbon societies and find solutions to some of the world’s most serious problems," the companies said