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.
"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.