This content is not available in your region

Mitsubishi to buy Dutch power firm Eneco for 4.1 billion euros

Access to the comments Comments
Mitsubishi to buy Dutch power firm Eneco for 4.1 billion euros
FILE PHOTO: The logo of Mitsubishi Motors Corp is displayed at the company's showroom in Tokyo, Japan January 18, 2019. REUTERS/Issei Kato   -   Copyright  ISSEI KATO(Reuters)
Text size Aa Aa

AMSTERDAM (Reuters) – A consortium led by Japan’s Mitsubishi Corp <8058.T> is to buy Eneco, the Dutch energy company owned by 44 cities, in a deal that values it at 4.1 billion euros ($4.52 billion), Eneco said on Monday.

Eneco, a highly-valued asset due to its strong focus on renewable energy, said it had been swayed by Mitsubishi’s plans to allow the company to continue its strategy and corporate identity.

“The consortium made the best offer for shareholders and all other stakeholders of Eneco, including employees,” the company said in a statement.

The Mitsubishi offer beat two other consortiums bidding for Eneco, one led by Shell <RDSa.L> and the other by Rabobank.

Under the terms of the deal, Mitsubishi will own 80% of Eneco and partner Chubu <9502.T> will own 20%.

The deal, which is backed by Eneco’s boards and a committee representing shareholders, must still be approved early next year by Eneco’s municipal shareholders.

Eneco said Mitsubishi already owns 400MW of Dutch offshore wind power, and would combine those operations with Eneco.

In September, Eneco reported first half earnings before interest, taxes, depreciation and amortisation (EBITDA) of 272 million euros ($303 million) for the first half of 2019, up from 230 million euros a year earlier.

(Reporting by Toby Sterling; Editing by Jan Harvey and Emelia Sithole-Matarise)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.