A domestic consortium set up by Royal Dutch Shell (LON:RDSA) and pension fund manager PGGM has taken a bigger lead in the race for Dutch energy company Eneco, Reuters has reported. The news came as two other contenders dropped out of the bidding.
Shell’s share price has slipped marginally lower in London this morning, having inched 0.14 percent lower to 2,583.00p as of 08:56 BST. The stock is fractionally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.33 percent lower at 7,392.15 points. The group’s shares have added nearly two percent to their value over the past year, as compared with about a 1.5-percent fall in the Footsie.
Shell leading Eneco race
Sources with knowledge of the matter told Reuters that a consortium set up by Shell and pension fund manager PGGM had taken a bigger lead in the race for Eneco, with France’s Total and Italy’s Enel, which had teamed up with Dutch pension fund manager APG, having both dropped out of the process. One of the sources, however, added that APG was now looking for a new partner.
“This month we’re reviewing non-binding offers, and we expect to notify the parties involved soon about what we’ve decided, and then we’ll move on (to the next phase in the sale process),” said Eneco spokesman Edwin van der Haar, told the newswire. Shell and PGGM said in January they were looking to bid jointly for the Dutch company.
Today’s update comes after Shell inked a deal this month to offload a refinery in California as part of its strategy to reshape its refining business.
Analysts on FTSE 100 group
JPMorgan Chase & Co reaffirmed the Anglo-Dutch oil major as a ‘top pick’ last week, without specifying a target on the Shell share price. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average valuation of 2,976.54p.