Electricity: TotalEnergies acquires all of Total Eren after five years of a fruitful strategic partnership – EQ Mag
Paris : Continuing its profitable growth in renewable electricity, TotalEnergies announces today the acquisition of the entire capital of Total Eren, thus increasing its stake from nearly 30% to 100%. The Total Eren teams will be fully integrated within the Renewables business unit of TotalEnergies. This operation follows the strategic agreement concluded between the two companies in 2017, which provided that TotalEnergies could take control of Total Eren (formerly EREN RE) after a period of five years.
As part of this transaction, the Total Eren business is valued at €3.8 billion, based on an attractive EBITDA multiple negotiated as part of the initial strategic agreement signed in 2017. The acquisition of 70.8% represents a net investment of approximately €1.5 billion for TotalEnergies.
The integration of Total Eren should lead in 2024 to an increase in the net operating income of the Integrated Power segment of TotalEnergies of around €160 million and of the CFFO of around €400 million.
A global player with 3.5 GW of renewable generation and 10 GW in portfolio
Total Eren has 3.5 GW of assets in operation worldwide, and has a diversified portfolio of solar, wind, hydroelectric and storage projects of more than 10 GW in 30 countries, including nearly 1.2 GW under construction or at an advanced stage of development. TotalEnergies will rely on the 2 GW of assets in operation of Total Eren in liberalized markets (notably in Portugal, Greece, Australia and Brazil) to accelerate its strategy as an integrated player in the electricity markets. TotalEnergies will also benefit from the presence and ability of Total Eren to develop projects in many countries such as India, Argentina, Kazakhstan or Uzbekistan.
Strong complementarity in terms of talent and location
In addition to its first-rate operated assets, Total Eren will bring to the Company the expertise and talent of nearly 500 employees in more than twenty countries. The remarkable organic growth of Total Eren testifies to the expertise that its teams have developed both internally and in collaboration with its partners and suppliers, since its foundation in 2012. The teams and the quality of the Total Eren portfolio will strengthen the capacity of TotalEnergies to support the growth of its production while optimizing its operating costs and its capex by taking advantage of its size and its negotiating power in terms of purchases.
Total Eren, pioneer of green hydrogen
Beyond its renewable energy production activities, Total Eren has launched, in recent years, pioneering green hydrogen projects in different regions, such as North Africa, Latin America and Australia. These green hydrogen activities will continue within the framework of a new partnership, under the leadership of an entity called TEH2 (80% owned by TotalEnergies and 20% by the EREN group).
“Our partnership with Total Eren has been very fruitful, as evidenced by the size and quality of the renewable energy portfolio built up. With the acquisition and integration of this entity, we are opening a new chapter in our development. Total Eren’s expertise and its presence in geographical areas complementary to ours will strengthen our renewable activities and our ability to become a profitable and integrated electricity player,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies . “I would like to thank the founders of Total Eren, Pâris Mouratoglou and David Corchia, as well as their teams, for the tremendous development work that has made this operation a success. Today, we welcome with open arms the experienced teams of Total Eren, who will pursue their mission while benefiting from the resources of a larger structure. »
“We have succeeded in making Total Eren a key player in renewable energies on the world stage”, declared Pâris Mouratoglou, President of Total Eren , “I would like to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest for their unwavering support since 2015. I would also like to thank Patrick Pouyanné for his trust and for the spirit in which our partnership has been structured, thus contributing to the success of these last five years with TotalEnergies. »
“This success is first and foremost due to the international teams of Total Eren,” added David Corchia, General Manager of Total Eren . “There is no doubt that, thanks to them, TotalEnergies will succeed in realizing its particularly ambitious plan in the renewables sector. With Pâris Mouratoglou, we will found and grow other companies committed to the energy transition and the decarbonization of our planet. We also plan, within the framework of this promising new partnership with TotalEnergies, to develop large-scale international projects for the production of green hydrogen.
