Shell and Dutch pension fund PGGM have joined forces to explore the opportunity to bid for the sustainable energy provider Eneco in the Netherlands.
In December 2018 Eneco and its shareholders’ committee announced the start of the privatisation process.
In a statement, Shell said both firms would combine the knowledge, ambitions and financial commitment to build on Eneco’s sustainable strategy and are determined to competitively grow the renewable energy products and services offer for millions of customers in North West Europe.
Shell believes that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands.
“The energy transition offers good opportunities for long-term investments in a more sustainable economy and we think Eneco can play a central role in realising the consortium’s shared ambitions. PGGM and Shell bring complementary experience and expertise across Eneco’s activities, which will support the delivery of affordable sustainable energy to a growing number of customers in North West Europe,” said Frank Roeters van Lennep, Chief Investment Officer Private Markets PGGM.
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. “This provides opportunities along the entire energy value chain, from generation of renewable power to trading and delivery at home, on the road and at work,” says Shell’s Integrated Gas & New Energies Director Maarten Wetselaar. “Eneco’s business neatly fits with Shell’s New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value.”
The consortium partners understand that Eneco will be brought to the market via a controlled auction, subject to shareholder approval. PGGM and Shell realise this process is at an early stage and respect that it is up to the shareholders to determine the next steps in the sale process.