Mitsubishi, Chubu Electric to Buy Major Dutch Power Company

Economy

Tokyo, Nov. 25 (Jiji Press)--Japanese trading house Mitsubishi Corp. <8058> and Chubu Electric Co. <9502> said Monday they have won preferential negotiating rights to buy major Dutch power supplier Eneco.

Mitsubishi and Chubu Electric aim to acquire by summer all outstanding shares in Eneco held by 44 municipalities in the Netherlands. The buyout is estimated to cost the Japanese team up to 4.1 billion euros.

The trading house will put up 80 pct of the total costs and the central Japan regional power utility the rest according to their investment ratios in a joint firm set up earlier this month for the Eneco acquisition, which would help Mitsubishi strengthen its renewable energy operations in Europe.

Eneco, based in Rotterdam, has six million sales contracts, chiefly for power generated by wind mills, in three European countries also including Belgium and Germany.

The Dutch company has already formed a partnership with Mitsubishi in offshore wind power generation and storage battery businesses.

[Copyright The Jiji Press, Ltd.]

Jiji Press