Mitsubishi agrees to buy Holland's Eneco in €4.1bn deal

Mitsubishi, in partnership with fellow Japanese firm Chubu Electric Power, along with Shell and private equity firm KKR, were all vying for control of Eneco, which is owned by 44 Dutch municipalities, attracted by its focus on renewable energy.

But Eneco said Mitsubishi had made the best offer, both in terms of price and for shareholders and employees.

"In the consortium, Eneco has found new shareholders that fully endorse, strengthen and contribute to the further national and international development of Eneco’s strategy," the company said in a statement.

Arjan van Gils, chairman of the shareholders’ committee, added that Mitsubishi and Chubu shared with Eneco "sustainable goals and ambitions".

Takehiko Kakiuchi, chief executive of Mitsubishi, said: "We have been successful 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.

"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."

As global trends increasingly shift away from fossil fuels towards cleaner forms of energy, the main energy companies are under pressure from both activists and shareholders to diversify. Eneco is one of the largest suppliers of natural gas and electricity in the Netherlands, but its attraction lies in its low-carbon energy projects and green technology such as smart thermostats and electric car-charging devices.

Shell has said it wants to spend around $2bn a year on energy transition investments from 2021 onwards. According to Reuters, the Dutch oil giant’s new energies director, Maarten Wetselaar, responded to losing out on Eneco by insisting Shell would "continue to look for opportunities in the energy transition".

Eneco’s privatisation remains subject to approval from its 44 municipal shareholders. Under the terms of the deal, Eneco will continue as standalone Dutch company.