TotalEnergies Grabs Total Eren for €1.5bn
- TotalEnergies SE (EPA:TTE) has agreed to take full control of Total Eren, a French energy major, for an enterprise value of about EUR 3.8 billion (USD 4.22bn). TotalEnergies will benefit from Total Eren's 3.5 GW renewable energy capacity and 10 GW project pipeline in 30 countries.
TotalEnergies SE (EPA:TTE), a French energy major, has agreed to take full control of Total Eren for an enterprise value of about EUR 3.8 billion (USD 4.22bn). The company will acquire the 70.8% stake it does not already have in Total Eren for approximately EUR 1.5 billion net. EREN Groupe, the seller of Total Eren, will invest the proceeds in its other business lines.
Total Eren has 3.5 GW of renewable energy capacity in operation and a solar, wind, hydro and storage project pipeline of over 10 GW in 30 countries. The buyer, TotalEnergies, will benefit from opportunities in markets such as India, Argentina, Kazakhstan and Uzbekistan. The integration of Total Eren into TotalEnergies' renewables operations is expected to increase its Integrated Power Net Operating Income by around EUR 160 million and CFFO by EUR 400 million in 2024.
How Will TotalEnergies Benefit From Acquiring Total Eren?
- TotalEnergies will benefit from the 3.5 GW of renewable energy capacity already in operation and 10 GW in project pipelines in 30 countries.
- TotalEnergies will benefit from potential growth opportunities in markets such as India, Argentina, Kazakhstan and Uzbekistan.
- The integration of Total Eren into TotalEnergies' renewables operations is expected to increase its Integrated Power Net Operating Income by around EUR 160 million and CFFO by EUR 400 million in 2024.
- TotalEnergies will gain access to Total Eren's technological solutions for hydrogen, storage and digital solutions, to be used in the development of its power and energy business.
- TotalEnergies will also benefit from Total Eren's expertise in developing large-scale renewable projects, as well as Total Eren's financial strength in accessing capital markets.