MC and Chubu Named Preferred Buyers in Bid for Dutch Energy Company "Eneco"

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.

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. In 2007, Eneco became one of the first energy companies to adopt a sustainable strategy, its aim being to lead Europe's transition to renewable energy sources. The company has been a 100% green energy provider to its consumers clients since 2011, offering innovative solutions that make it easier for customers to make the switch to more sustainable and smarter energy consumption. Eneco's sustainable strategy also helped it to become the first Dutch company admitted to the Science Based Targets initiative. (Note) The company is recognized by environmental groups as an active participant in climate change countermeasures.

MC and Eneco began working together in 2012, and their collaboration has successfully developed three offshore wind projects (1,230 megawatts) and one of Europe's largest battery storage projects (48 megawatts). 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.

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.

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.

(Note)The Science Based Targets initiative is a partnership between the CDP, UN Global Compact, WRI and WWF. It helps companies determine how much they need to reduce their emissions by to prevent the worst impacts of climate change.

Eneco Flag and Windmill

[About Diamond Chubu Europe B.V.]

Headquarters:Amsterdam, The Netherlands
Established:2019
Investment Ratio:Mitsubishi 80%, Chubu 20%
Representative::Yasuhiko Okabe

[Reference Information]

1　About Mitsubishi Corporation
Headquarters:3-1 Marunouchi 2-Chome, Chiyoda-ku, Tokyo, Japan
Established:1954
Main Business:MC is a global integrated business enterprise that is comprised of 10 Business Groups: Natural Gas, Industrial Materials, Petroleum & Chemicals, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development.
Representative:Takehiko Kakiuchi, President and CEO

2　About Chubu Electric Power Co.,Inc.
Headquarters:1 Higashi-shincho, Higashi-ku, Nagoya, Aichi, Japan
Established:1951
Main Business:Electric utility and related enterprises, Gas supply and thermal storage brokerage, On-site energy business, Community Support Infrastructure business, Data platform business, Overseas consulting and investment, Etc.
Representative:Satoru Katsuno, President and Director

3　About Eneco
Headquarters:Rotterdam, The Netherlands
Established:1995
Main Business:Eneco is a group of companies engaged in sustainable energy and innovation. The company invests in wind and solar farms, biomass plants and green district heating with an aim to increase its presence in sustainable energy. Furthermore, Eneco develops innovative products and services that enable its customers to be in charge of how they generate, store, use or share energy.
Representative::CEO, Ruud Sondag