Mitsubishi Corp (TYO: 8058) have purchased Eneco in a deal valuing the Dutch energy firm at 4.1 billion euros.

This is a noteworthy deal for both parties, as Eneco reported that Mitsubishi bears rival bids from Shell (LON: RDSA) and private equity firm (NYSE: KKR).

Shares in Mitsubishi Corp jumped 1.71% on Monday afternoon to 2,889JPY.

Eneco, is a company owned by 44 Dutch municipalities and with a strong focus on renewable energy, said it had been swayed by Mitsubishi’s plans to allow the company to continue its strategy and retain its corporate identity.

There was no surprise that Shell had expressed interest in Eneco, after the global titan purchased wind farm specialist EOLFI as it plans to expand into the renewable energy sector.

Eneco said Mitsubishi’s group had “made the best offer for shareholders and all other stakeholders of Eneco, including employees.”

Misubishi have pledged to invest 1 billion euros in Eneco’s European operations, which mainly reside in Netherlands, Germany and Belgium.

The deal will give Mitsubishi 80% of Eneco and its partner Chubu (TYO: 9502) a 20% stake.

“Eneco fits perfectly with our current energy activities and offers us a platform from which to grow further in the European market,” Mitsubishi Chief Executive Takehiko Kakiuchi said in a statement.

Mitsubishi already owned 400 megawatts (MW) of Dutch offshore wind power and would combine those operations with Eneco, the Dutch company said.

In a highly competitive industry, many of the big firms are looking to diversify into other markets.

Shell updated shareholders that they were looking into new acquisitions in the renewable energy sector, after the firm suffered a slip in its profits following poor trading and volatile oil prices.

This will come as good news for shareholders of Mitsubishi, and the added fact of beating main rivals to this purchase will make the deal even sweeter.

Mitsubishi seem to have given Eneco freedom to continue their operations and keep their identity, which was one of the reasons why Eneco chose the Japanese titan.

Certainly, this seems like a shrewd piece of business and could exploit long term benefits if Mitsubishi are able to expand into the renewables market.