Total to acquire Direct Energie

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on 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

September 22, 2021
Renewables developer and asset manager RES has named Eduardo Medina as its new chief executive designate, with the former Vestas, SunPower and Acciona exec set to take over at the end of next month.
September 14, 2021
Polish renewables developer PAD-RES is to be acquired by a joint venture established by real estate investor Kajima and private equity firm Griffin Real Estate.
September 6, 2021
French energy major TotalEnergies has agreed to build a 1GW solar farm in Basra region of southern Iraq in a deal worth US$10 billion
September 2, 2021
The European Commission (EC) has given the green light to a French aid scheme that is expected to support the development of 3.7GW of rooftop solar.
August 20, 2021
Power outages and grid failures as a result of recent extreme weather events are driving the adoption of solar and storage systems among US homeowners, new research from SunPower suggests.
August 20, 2021
Solar PV plants generated 10% of the EU-27’s electricity demand during June and July this year, new analysis by energy thinktank Ember has found.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021