AMSTERDAM (DOW JONES)--German utility RWE AG (RWE.XE) said Tuesday it plans to invest more than EUR3 billion in clean energy in the Netherlands, in an effort which should convince a key shareholder to vote in favor of RWE's planned takeover of Dutch utility Essent NV.
In a joint statement, RWE and Essent said between 2009 and 2013, RWE plans to invest more than EUR3 billion in the Netherlands, mainly in clean energy facilities. The companies also said they reached a "sustainability pact" which should guarantee the execution of these investments.
RWE is set to take over Essent in a EUR9.3 billion deal which would be one of Europe's largest takeovers this year.
However, the government of the Dutch North-Brabant province, which owns just under 31% of non-listed Essent, recently said it would delay its final decision on the takeover after the provincial parliament recommended the government shouldn't accept RWE's offer.
The parliament said RWE's policy towards clean energy was insufficient and therefore demanded more harder guarantees on the matter before a takeover could take place.
North-Brabant's approval is crucial to the completion of the deal, since a key condition for RWE's offer is a tender rate of at least 80%. Given the size of North-Brabant's stake, a rejection of the offer could derail the takeover.
-By Maarten van Tartwijk, Dow Jones Newswires; +31 20 571 5201; email@example.com