Shell and PGGM, a cooperative Dutch pension fund service provider, joined forces to participate in a controlled auction to acquire the Netherlands-based sustainable energy provider Eneco, according to a joint statement released on Monday.
In December 2018, Eneco and its shareholders' committee announced the start of the privatization process of the company.
'This consortium is impressed with Eneco's achievements in transforming the Dutch energy system through investments in sustainability and renewable energy. PGGM and Shell 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 press release read.
The consortium envisages that Eneco will be a platform for growth, operating from Rotterdam, with potential investments inside and outside of the Netherlands.
The partners also declared that Eneco's privatization process is at an early stage, adding that the shareholders will determine the next steps in the sale process.
'The consortium looks forward to further assessing the potential opportunity and has shared an open letter further outlining its intent,' they said.
Shell's Integrated Gas and New Energies Director Maarten Wetselaar said Eneco's business neatly fits with Shell's New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide greater volumes of cleaner energy.
'The consortium is committed to expand and develop business models that create both societal and commercial value,' he added.
According to the statement, PGGM sees sustainability as a cornerstone of its investment policy for Dutch pension capital through long-term investments in the global energy transition.
'As pension fund investor, PGGM aims to combine sound financial returns on investments with tangible societal returns. Eneco would greatly add to PGGM’s growing global portfolio of sustainable investments which provide concrete climate solutions (currently valued at over $8 billion), lower the carbon footprint of pension capital and offer a unique chance to invest directly in the Dutch economy,' it said.
The Eneco Group is an autonomous and independent energy company consisting of a number of different brands and business units, each with its own role in the generation, use, storage, and sharing of energy.
No date has been given for the auction.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr