The Netherlands: Energy PGGM, Shell Collaborate to Explore Potential Acquistion of Energy Provider Eneco
Both the companies are impressed with Eneco’s efforts towards the Dutch energy system via investments in sustainability and renewable energy. Togther, they aim at acquiring the firm post the decision of the shareholders.
The Netherlands – PGGM and Shell have joined forces to explore the opportunity to participate in the controlled auction for the sustainable energy provider Eneco. In December 2018, Eneco and its shareholders’ committee announced the start of the privatisation process.
This consortium is impressed with Eneco’s achievements in transforming the Dutch energy system through investments in sustainability and renewable energy. PGGM and Shell combine the knowledge, ambitions and financial commitment to build on Eneco’s sustainable strategy. They are determined to competitively grow the renewable energy products and services offer for millions of customers in North West Europe.
With their roots in the Dutch society, both the companies understand Eneco’s unique position in taking on the challenges and opportunities of the energy transition. The consortium envisages that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands. Eneco could realise this as a separate entity, leveraging a strong identity, durable customer relations and a committed and experienced workforce within the company.
Through its existing business and activities Shell offers access to clean-tech research and development, connected mobility and digital start-ups as well as a substantial number of partners and customers. On the other hand, PGGM sees sustainability as a cornerstone of its investment policy for Dutch pension capital; investing for the long term in the energy transition around the world. As pension fund investor it aims to combine sound financial returns on investments with tangible societal returns. Eneco would greatly add to PGGM’s growing global portfolio of sustainable investments which provide concrete climate solutions (currently valued at over 8 billion dollars), lower the carbon footprint of pension capital and offer a unique chance to invest directly in the Dutch economy.
Shell is amplifying its role in the energy transition with increasing levels of investments in offshore wind, solar, e-mobility and the power sector. Shell established its New Energies business to create business opportunities in the transition to a low-carbon future. Any potential investment should competitively fit within the company’s strategy and financial framework and stated capital investment guidance range of 25-30 billion dollars per annum.
The consortium partners understand that Eneco will be brought to the market via a controlled auction, subject to shareholder approval. They also realise this process is at an early stage and respect that it is up to the shareholders to determine the next step in the sale process. The consortium looks forward to further assessing the potential opportunity and has shared an open letter further outlining its intent.