TotalEnergies, a prominent energy company, announced on Tuesday its decision to secure complete ownership of renewable energy firm Total Eren. With its existing stake in Total Eren standing at 30%, TotalEnergies is poised to increase its investment to full control.
The transaction will see Total Eren valued at an enterprise value of 3.8 billion euros ($4.2 billion). As part of the deal, TotalEnergies will invest approximately 1.5 billion euros to acquire an additional 70.8% share in the renewable energy company.
In light of this strategic acquisition, TotalEnergies Chairman and CEO, Patrick Pouyanne, emphasized the company’s commitment to advancing its renewable activities. He praised the expertise of Total Eren’s team and highlighted the added advantage of their complementary geographical footprint in the renewable energy sector. This move is set to propel TotalEnergies towards becoming a more robust and profitable integrated power player.
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Furthermore, the integration of Total Eren into TotalEnergies’ portfolio is projected to yield significant financial benefits. In 2024, the company expects a substantial increase in integrated power net operating income, estimated at around 160 million euros. Additionally, the acquisition is anticipated to bolster TotalEnergies’ cash flow from operations (CFFO) by approximately 400 million euros.
This strategic alignment is seen as a pivotal step in TotalEnergies’ expansion within the renewable energy domain. By harnessing the synergies and capabilities of Total Eren, the company aims to fortify its position in the renewable energy market and drive sustainable growth in the years to come.
