Enel, Total give up on buying Eneco - report

Energy majors Total SA (EPA:FP) of France and Enel SpA (BIT:ENEL) of Italy have both dropped out of the race to acquire Dutch utility Eneco, Reuters reports, quoting informed sources.

This leaves Dutch oil and gas giant Royal Dutch Shell Plc (AMS:RDSA) as the main contender to buy the company, the report says, while adding that Australia’s Macquarie Group Ltd (ASX:MQG) and Japan’s Mitsubishi Corp (TYO:8058) have not yet given up. One of the sources has noted that French utility EDF SA (EPA:EDF) has presented a non-binding offer as well.

According to the report, Dutch pension fund manager APG, which was supposed to bid alongside Total and Enel, is now seeking a new partner.

A spokesperson for Eneco told the news agency that the company is currently reviewing non-binding offers.

Shell announced in January it had teamed up with pension fund service provider PGGM to explore the opportunity to buy Eneco. At the time, the gas giant said that Eneco’s business was a good fit with its own New Energies activities. The suitors mentioned in an open letter that they share Eneco’s strategy to grow its renewable energy and customer portfolio.

The sale of Eneco could fetch some EUR 3 billion (USD 3.4bn), according to analysts quoted by Reuters.

(EUR 1.0 = USD 1.138)

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