Shell has its eye on green energy provider Eneco
Dutch oil giant Shell has its eye on green energy supplier Eneco, headquartered in Rotterdam (Netherlands) and active in Holland, Belgium, Germany, France and the United Kingdom. Shell hired an American business bank as advisor, Dutch newspaper De Telegraaf says, based on two sources in the bank sector. Shell answers with ‘no comment’.
Shell isn’t the only oil giant interested as French Total is said to have made some initiating moves to find potential advisors to make a bid on the Dutch sustainable energy company.
Slap in the teeth
Big oil companies being interested in this ‘green target’ is a slap in the teeth of environmentalists, who among others have held fund-raising actions to prevent Eneco falling into the ‘wrong hands’. Today Eneco is owned by 53 Dutch municipalities of which Rotterdam is the biggest. 75% of them is said to be interested in selling.
In a letter to the responsible aldermen of the communities, a group of 29 has abandoned its trust in the board of commissioners of Eneco, asking for an exceptional general assembly on Friday. They don’t like the commissioners to claim the right to decide themselves in the last advent of a sale. This turmoil might slacken possible bids in the future, analysts think.
Although Shell’s ‘fossil image’ might be a drawback in bidding for Eneco, the deal could have many benefits that appeal to the shareholders. Shell is believed it will want to leave the green image and strategy of Eneco unchanged and being a trusted financial partner with no layoffs as a future perspective.
Besides Shell and Total other parties already showed interest in Eneco beginning 2017 like investment company HAL, pension fund PGGM, Japanese Mitsubishi, Austrian energy company Verbund, private equity company CVC and French energy giant Engie.