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Mitsubishi, Chubu Electric complete Eneco takeover
Posted on Wednesday, 25 March 2020 14:45
Mitsubishi and Chubu Electric have announced the closing of their previously announced acquisition of Eneco, the Dutch energy company.
The parties said that since reaching an agreement in November 2019, they have been completing the takeover procedures and as of yesterday, the transaction had closed.
They conducted the deal via a joint venture company known as Diamond Chubu Europe.
Under the terms of the transaction, the buyers paid EUR 4.10 billion for the business.
Mitsubishi said it hopes the acquisition will enable it to capitalise on Eneco’s technological strengths and knowledge of the renewable energy segment in order to accelerate its development in this area, both in Europe and globally.
For its part, Chubu believes it will be able to make savings in the energy unit.
The buyers were selected as the preferred bidders for Eneco following an auction process; reports of a sale of the business date back to July 2017.
Prior to the deal, it was owned by 53 municipalities in the Netherlands.
Among the other potential acquirors who were linked with bids for the business were Royal Dutch Shell, Total and Centrica, as well as private equity investors such as CVC, EQT and Macquarie.
Reports suggested the transaction had been delated due to a dispute between Eneco’s board and its shareholders, although this was resolved in early 2018 and the search for an acquiror resumed, according to a De Tijd article at the time.
Eneco claims to have been the first energy company to have chosen a sustainable strategy, in 2007, and now describes itself as a leader in the energy transition field in the Netherlands and Belgium, as well as one of the biggest investors in sustainable energy.
The company recorded revenue from energy sales and energy-related activities of EUR 4.27 billion in 2019, up from EUR 4.10 billion in the previous 12 months.
Profit before income tax stood at EUR 117.00 million for the year, compared to the EUR 130.00 million generated in 2018.
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