TotalEnergies is buying the remaining 70% interest it does not already own in a €3.8bn renewables project developer from shareholders including Bpifrance, Tikehau Capital, Peugeot Invest and NextWorld.
TotalEnergies, which owns close to 30% stake in Total Eren, said it will make a net investment of around €1.5bn to buy out other shareholders’ 70.8% interest.
The deal follows an agreement signed between TotalEnergies and EREN RE, known now as Total Eren, in 2017, that granted TotalEnergies the right to acquire all of Total Eren after a five-year period. Total Eren is valued at an enterprise value of €3.8bn based on the initial 2017 agreement.
Total Eren has 3.5GW of renewable capacity in operation worldwide and a solar, wind, hydroelectric and storage projects pipeline of over 10GW in 30 countries, of which 1.2GW are in construction or late-stage development.
In recent years, Total Eren has launched green hydrogen projects in various regions, such as North Africa, Latin America and Australia.
TotalEnergies said that full ownership of Total Eren would increase its footprint and enable it to develop projects in other countries such as India, Argentina, Kazakhstan and Uzbekistan.
Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player.”
Pâris Mouratoglou, chairman of Total Eren, said: “With Total Eren, we have successfully created a best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest for their constant support since 2015.”
David Corchia, CEO of Total Eren, said: “Together with Pâris Mouratoglou, we will continue creating and developing new companies for the energy transition and the planet’s decarbonisation, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide.”
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