Total to acquire majority control of Direct Energie for €1.4bn

By Johan De Mulder

Total has agreed to acquire nearly 75% of French electric utility company Direct Energie for €1.4bn.

The move comes at an individal price of €42 per share for Total and will allow it to expand its footprint in gas and electricity throughout France and Belgium. It is aiming to have 7mn customers in both countries by 2022.

Direct Energie’s installed capacity of 1.35 GW, including 800 MW of gas-fired power plant and 550 MW of renewable electricity, will supplement Total’s 900 MW installed capacity.

See also:


"Through this transaction, Total is actively pursuing its development in electricity and gas generation and distribution in France and Belgium," said Patrick Pouyanné, Chairman and CEO of Total. "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.

"We are delighted to welcome the Direct Energie teams into Total, who will contribute their skills in the field of electricity and who will be at the heart of the Group’s growth ambition in this field."

Direct Energie CEO Xavier Caïtucoli added: "We welcome this transaction with pride and enthusiasm and we are convinced that combining with Total will be to the benefit of our customers."

Last month, Business Chief reported that Total has closed its €6.5bn acquisition of Maersk Oil, seven months after the merger was initially revealed.

Share

Featured Articles

Abu Dhabi Airports prepares for Terminal A opening

A decade in the making, Abu Dhabi International Airport welcomes 6,000 volunteers to test operational readiness of stunning new Terminal A building

Business Chief expands portfolio with new look and coverage

Business Chief Middle East & Africa launches with fresh new look and extended coverage of the region, with exclusive executive interviews and insights

How Octopus Energy grew to become an industry giant

Octopus Energy continues to grow after a deal was agreed to acquire Shell Energy in the UK and Germany, taking its customer base to almost seven million

Perkbox CEO: How to support employees through tough times

Human Capital

How Middle East is embracing the future of digital finance

Corporate Finance

UAE Lulu Group shifts business for global growth and IPO

Corporate Finance