Japan's Eneos keen on buying JRE for USD 1.8bn - report

Japanese oil major Eneos Holdings Inc (TYO:5020) plans to buy domestic renewables developer and plant operator Japan Renewable Energy (JRE) in a deal worth over JPY 200 billion (USD 1.8bn/EUR 1.55bn), the Nikkei reports.

According to the business daily, Eneos is gearing up to acquire all shares of the Tokyo-based company from US investment bank Goldman Sachs and Singaporean sovereign wealth fund GIC.

Still, a decision on acquiring any business has not been made, a spokesperson for Eneos has told the Nikkei, adding that the oil group is mulling over a series of options to grow its renewable energy activities.

An announcement on the transaction is expected to be made as early as next week.

Set up in 2012, JRE is developing and operating renewable power projects. At the start of September, the company had 58 wind, solar and biomass power plants in operation and under construction, as well as additional schemes under development. The firm is also operating in the offshore wind field and is developing projects off the coasts of Nagasaki and Akita prefectures.

Supposedly, the acquisition will speed up Eneos’ transition away from oil. Under its three-year business plan through March 2023, Eneos has earmarked JPY 860 billion for strategic investments, more than half of which will target next-generation energy supply, renewables and hydrogen.

(JPY 100 = USD 0.899/EUR 0.776)

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