The Netherlands biggest electricity and gas utility Essent has agreed to be sold to Germany’s power giant RWE for €9.3bn.
Local authority-owned Essent said the ‘strategic choice’ secured its ‘long held ambition to play a leading role in the consolidation process currently under way in the northwestern European energy market’.
The takeover price does not include Essent’s waste management and network activities. By Dutch law, the network must remain in public hands.
Essent’s trading operations will be merged with those of RWE and Essent will become RWE’s operating company in the Netherlands and Belgium.
Essent’s management and supervisory boards have approved the deal unanimously and the local government shareholders (six provinces and 140 local councils, according to the Financieele Dagblad) have already indicated they will accept RWE’s offer.
No job losses in the Netherlands are expected as a result of the takeover Essent, which employs 7,800 workers, says. The deal is expected to be completed in the third quarter of 2009 and is conditional on at least 80% of shares being offered.
‘Thanks to the improved financial opportunities, Essent will be able to further develop large-scale generation and its gas infrastructure… This powerful and international basis will clearly deliver advantages for customers (sharper prices) and employees,’ Essent said.
For the RWE statement, in English, click here
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