TotalEnergies has entered into an agreement with Energetický a prumyslový holding (EPH), a Czech energy company with activities within electricity and heat production in large parts of Europe, to take over half of the company's portfolio of flexible electricity generation assets in Western Europe. The deal includes gas and biomass power plants as well as battery plants and values the portfolio at 10.6 billion euros. TotalEnergies writes.
As payment, EPH will receive shares in TotalEnergies with a total value of 5.1 billion euros, corresponding to 95.4 million shares or around 4.1 percent of the company's total share capital. EPH will thus become one of TotalEnergies' largest shareholders.
The two companies will establish a joint venture with an ownership stake of 50/50. The new company will be responsible for the operation and development of the power plants, which have a total capacity of over 14 GW in operation or under construction across Italy, the UK, Ireland, the Netherlands and France. In addition, around 5 GW of projects are under development.
TotalEnergies expects the transaction to immediately strengthen the company's cash flow and earnings. Over the next five years, annual free cash flow is expected to increase by approximately USD 750 million.
According to the company, the acquisition is an important step in the work to expand the integrated electricity business in Europe and strengthen the interaction between gas, renewable energy and flexible electricity generation.
- This acquisition marks another important milestone in our strategy to build an integrated electricity player in Europe. By joining forces with EPH in a long-term partnership, we accelerate the execution of our integrated power generation strategy and strengthen our ability to deliver reliable, competitive and low-carbon energy to our customers by leveraging the synergy between our renewable energy portfolio and flexible power generation. As Europe's largest gas company, this transaction allows us to fully leverage the integration of gas and power and create added value in our LNG business, independent of oil cycles. We are convinced that the partnership will create lasting value for our shareholders and we are pleased to welcome a new long-term European shareholder who fully supports TotalEnergies’ transformation strategy,” said Patrick Pouyanné, CEO of TotalEnergies.
The transaction is pending approval from relevant authorities and is expected to be completed in mid-2026.
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