The proposed takeover of energy concern Essent by the German giant RWE has become extremely uncertain following a vote by Essent’s largest shareholder, the provincial government of Noord-Brabant, against the move.

The members of the Noord-Brabant government voted 28 against and 26 for sale of the utility after a 10 hour meeting on Friday, reports the Financieele Dagblad.
Noord-Brabant owns over 30% of the shares in Essent. RWE has offered €9.3bn euros for the company on the condition that at least 80% of its shares are sold.
Recommendation
Formally, the vote is a ‘recommendation’ to the provincial government’s executive which has the authority to discard the advice although this would be extremely unusual, says the Financieele Dagblad. The executive is due to vote on the takeover on May 12, the paper says.
According to the Labour Noord-Brabant councillor Annemarie Moons, disagreement about how the money generated from the sale should be spent was one of the main reasons her party was split on the vote.
The provincial government will get €2.3bn from the transaction. The Labour members who voted against the sale wanted guarantees that this will be spent on sustainable projects, reports the FD.
The local conservative VVD party, previously a staunch supporter of privatisation, was also divided on the sale.
VVD less positive
The VVD is less positive now that the European Union has watered down the norm for the separation of grids which means Dutch regulation goes much further than the rest of Europe.
Under EU guidelines, energy firms must split off their grids but can keep them under the same holding company as their commercial activities.
In a reaction to the rejection of its offer by the Noord-Brabant government, RWE told the FD that it is ‘disappointed’ but added that it remains hopeful that the executive will nevertheless vote in favour.