TotalEnergies has agreed to increase its stake in Total Eren from 30% to 100% and it will integrate the company into its renewables unit.
The deal values Total Eren at an enterprise value of 3.8 billion euros ($4.21bn). Buying the outstanding 70.8% stake will cost TotalEnergies around 1.5bn euros ($1.66bn).
“Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio. With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
TotalEnergies made clear its plans to acquire Total Eren in 2022.
Pouyanné went on to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, and 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.”
Total Eren has 3.5 GW of renewable capacity around the world. It also has another 10 GW of solar, wind, hydropower and storage projects in the pipeline, in 30 countries. Of these, 1.2 GW are in construction or nearing development.
The buyer aims to have 100 GW of renewable capacity by 2030. In 2021, it reached 10 GW.
TotalEnergies highlighted merchant assets in Portugal, Greece, Australia and Brazil, in addition to opportunities in India, Argentina, Kazakhstan and Uzbekistan.
Total Eren has been working on green hydrogen projects, in North Africa, Latin America and Australia. TotalEnergies will take an 80% stake in these activities via a new company TEH2. Eren will have the remaining 20%.
Total Eren chairman Mouratoglou said the company was a “best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their constant support since 2015.”