Oil major Shell and Dutch pension fund PGGM are considering the joint acquisition of Netherlands-based energy company Eneco.
The duo said they have “joined forces to explore the opportunity to participate in the controlled auction” for Eneco.
Eneco and its shareholders’ committee announced the start of a privatisation process in December.
Shell and PGGM said that they are “impressed with Eneco’s achievements in transforming the Dutch energy system through investments in sustainability and renewable energy”.
They added that the partners “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”.
The consortium said that because of their roots in Dutch society, they both “understand Eneco’s unique position in taking on the challenges and opportunities of the energy transition”.
Eneco is viewed as a “platform for growth” with potential for investment in the Netherlands and elsewhere, they said.
“Eneco could realise this as a separate entity, leveraging a strong identity, durable customer relations and a committed and experienced workforce within the company,” Shell and PGGM said.
PGGM private markets chief investment officer Frank Roeters van Lennep said: “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.”
Shell integrated gas & new energies director Maarten Wetselaar said: “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.
“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.”
PGGM said that the acquisition of Eneco would greatly add to its growing global portfolio of sustainable investments, lower the carbon footprint of pension capital and offer a chance to invest directly in the Dutch economy.
The consortium said that they understand that Eneco will be brought to the market via a controlled auction, subject to shareholder approval, and that the process is at an early stage.
“It is up to the shareholders to determine the next steps in the sale process,” they said.