Total to acquire Direct Energie

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

French power giant Total has signed an agreement with the controlling shareholders of another France-based power firm Direct Energie to acquire a 74.33% stake in the company for roughly €1.4 billion.

In terms of power generation, Direct Energie has an installed base of 800MW in gas-fired power plants and 550MW of renewable energy. Last October, Direct Energie completed its acquisition of Quadran, which has renewable energy assets predominantly in France.

Moreover, Direct Energie has a 400MW gas-fired power plant under construction and a 2GW pipeline of renewable electricity projects in France, which will complement Total’s own 900MW of installed power capacity.

Combined with Total Eren, its renewables arm in emerging markets, and Sunpower in the US, Total is now targeting 10GW of installed capacity within five years across gas-fired power plants and renewables.

From a wider perspective, Total’s move follows a trend of other oil majors in entering the utility market whilst also snapping up renewable energy assets and other forms of low carbon energy. In this case, Total’s 1.5 million customer portfolio will be combined with Direct Energie’s 2.6 million-strong portfolio in France and Belgium, and Total plans to reach 7 million customers across the two countries by 2022. Total will now be more competitive against its other French utility rivals Engie and EDF.

Other oil majors, Shell and BP have made similar big moves of late. In terms of solar, PV Tech has reported on a panel of operators suggesting that solar companies will have to find a strategic sweet spot in which to operate as big oil majors return to the sector.

Commenting on the latest deal, Patrick Pouyanné, chairman and CEO of Total, said: “Through this transaction, Total is actively pursuing its development in electricity and gas generation and distribution in France and Belgium. This friendly takeover is part of the Group’s strategy to expand along the entire gas-electricity value chain and to develop low-carbon energies, in line with our ambition to become the responsible energy major.”

The share purchase price in the deal was €42. Direct Energie’s Board of Directors has already approved the transaction. On completion of the acquisition, Total will file a tender offer with the French Financial Market Authority for the securities of Direct Energie. The transaction remains subject to a consultation process of the employee representative bodies.

Xavier Caïtucoli, chairman and CEO of Direct Energie, said: “The Direct Energie teams will be at the heart of the strategy of one of the greatest French companies. I have no doubt that their hard work, creativity and talents will allow the new entity to expand its ambitions”.

This story previously stated that direct energie was the parent company of Neoen.

Read Next

PV Tech Premium
July 30, 2021
Not only will solar be the dominant source of new power generation in Europe by 2025, cementing its position as the third largest market for solar globally, but the continent has placed the asset class at the very heart of its COVID-19 recovery strategy. As part of a week-long special report on PV Tech Premium, Liam Stoker, Edith Hancock and Jules Scully explore the drivers for solar in Europe, the key markets and the challenges that remain.
July 29, 2021
US residential solar installer SunPower has partnered with EV charging provider Wallbox to add EV charging technologies to its portfolio.
July 20, 2021
Spanish developer Grenergy has added three new directors to its team with the aim of accelerating its European energy and storage operations
July 14, 2021
Maxeon Solar Technologies has expanded its AC Energy Solutions portfolio with the launch of a new module for the rooftop solar market.
July 2, 2021
Malaysian utility company Tenaga Nasional Berhad (TNB) yesterday launched Vantage, a renewable energy investment and asset management company
June 22, 2021
Up to 1.5GW of new capacity could be unlocked in the south and east of England by using solar, battery storage and wind for voltage control services.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK