Dutch Province Parliament Supports RWE-Essent Deal

German utility RWE AG's (RWE.XE) plan to take over Essent NV came close to its finalization Friday, after the parliament of the Dutch province of North Brabant, a key Essent shareholder, said it will support the deal.

After a day-long parliamentary session discussing the issue, the provincial parliament voted in favor with a 58% majority. The vote was advisory and therefore non-binding, but important for the provincial government to avoid a political crisis.

The parliament's support clears the way for the provincial government to give its final approval to the deal.

North Brabant, which owns just under 31% in Essent, is crucial to the completion of the EUR9.3 billion takeover, since a key condition for RWE's offer is a tender rate of at least 80%.

North Brabant's government, which had already signaled it's in favor of the deal, earlier this week delayed its decision on the offer after the provincial parliament in a non-binding recommendation said the government shouldn't accept it.

-By Maarten van Tartwijk, Dow Jones Newswires; [phone]; [e-mail]