France-based energy giant TotalEnergies is to buy out the other shareholders of Total Eren as part of its strategy to grow its renewable energy business profitably.
Total Eren specialises in producing renewable power, for which it currently has 3.5 GW in capacity around the world. It also has a pipeline of other solar, hydroelectric, wind and storage projects in 30 countries with a total capacity of 10 GW. TotalEnergies, which also makes products like grease and gear oil for the renewables sector, also has its own business unit for renewables, and Total Eren will be integrated fully with this.
TotalEnergies’ CEO and Chairman, Patrick Pouyanné, said that Total Eren’s geographical presence and expertise would complement and reinforce his company’s own activities in the renewable sector and support it in becoming a profitable player in the integrated energy market. He also said:
“I want to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, as well as their teams, for their incredible development work, which led to this successful achievement. Today, we are welcoming Total Eren’s experienced teams, who will continue their remarkable work with the added resources of a bigger company.”
The deal is based on a strategic agreement that Total Eren and TotalEnergies signed in 2017, with this entitling TotalEnergies to acquire Total Eren in its entirety after five years. The acquisition values Total Eren at €3.8 billion, with TotalEnergies investing approximately €1.5 billion in buying the 70.8% in shares that it doesn’t currently own.