Prime Highlight
- TotalEnergies will acquire 50% of EPH’s flexible power generation platform in Western Europe in a €5.1 billion all-stock transaction.
- The deal will more than double TotalEnergies’ net gas-fired power capacity and strengthen its position as an integrated electricity player in Europe.
Key Facts
- The joint venture will manage over 14 GW of gas-fired and biomass plants across Italy, the UK, Ireland, the Netherlands, and France.
- The transaction is expected to boost annual electricity generation by 15 TWh and allow the Integrated Power division to generate cash flow starting in 2027.
Background
TotalEnergies has agreed to acquire 50% of Czech energy group EPH’s flexible power generation platform in Western Europe, in a €5.1 billion ($5.92 billion) all-stock transaction that will more than double the French major’s net gas-fired power capacity. The company announced on Monday that the deal supports its strategy to become a leading integrated electricity player in Europe.
Under the agreement, EPH, majority-owned by Czech billionaire Daniel Kretinsky, will receive newly issued TotalEnergies shares, giving it around 4.1% of the French firm’s capital. The partnership strengthens TotalEnergies’ position in gas-based generation, which is needed to support Europe’s growing demand for reliable power, particularly from data centres and energy-intensive sectors.
The deal comes as TotalEnergies faces investor pressure to improve its balance sheet following over $3 billion in acquisitions this year. At the same time, the company has been seeking strategic opportunities in gas-fired plants, which earn premium payments for generating electricity when renewable output drops.
The transaction will establish a 50-50 joint venture managing a portfolio of more than 14 gigawatts of gas-fired and biomass plants, along with battery systems spread across Italy, the UK, Ireland, the Netherlands, and France. Both companies will market their share of power production under a tolling arrangement.
TotalEnergies said the additional 15 terawatt-hours of annual electricity generation will allow its Integrated Power division to begin generating cash flow in 2027, a year earlier than expected. It also expects the deal to help it capture added value from around 2 million tons of LNG annually.
The company added that the transaction will be immediately accretive to cash flow per share and will allow it to cut annual capital spending by $1 billion between 2026 and 2030, while maintaining its goal of producing 100–120 TWh of electricity by the end of the decade.
