FRANCE – French multinational energy conglomerate TotalEnergies has announced the completion of a full buyout of other shareholders’ stakes in its renewable energy subsidiary, Total Eren, increasing its ownership from nearly 30% to 100%.
The teams from Total Eren will now be fully integrated within TotalEnergies’ Renewables business unit.
This deal follows a strategic agreement inked between TotalEnergies and Total Eren in 2017, granting TotalEnergies the right to acquire all of Total Eren (previously EREN RE) after a five-year period.
“With the acquisition and integration of Total Eren, we’re embarking on a new chapter in our development,” stated Patrick Pouyanné, Chairman & CEO of TotalEnergies.
The expertise of its team and its diverse geographical presence will fortify our renewable activities and enhance our capability to evolve as a profitable integrated power player.
“I extend my gratitude to Total Eren’s founders, Pâris Mouratoglou and David Corchia, and their teams for their incredible efforts in development, culminating in this successful milestone. Today, we warmly welcome Total Eren’s seasoned teams, who will continue their remarkable work backed by the expanded resources of a larger company.”
As part of this transaction, Total Eren is valued at an Enterprise Value of €3.8 billion (US$ 4.15bn) based on an attractive EBITDA multiple negotiated in the initial strategic agreement signed in 2017.The acquisition of 70.8%1 represents a net investment of around €1.5 billion (US$ 1.64bn) for TotalEnergies.
The integration of Total Eren is anticipated to result in an increase in TotalEnergies’ Integrated Power Net Operating Income of around €160 million (US$174.78m) and CFFO of approximately €400 million (US$436.94m) in 2024.
Enhanced Renewable Pipeline for TotalEnergies
Total Eren currently holds 3.5 GW of renewable capacity operational globally, with a pipeline that encompasses solar, wind, hydroelectric, and storage projects totaling over 10 GW across 30 countries, including 1.2 GW in construction or late-stage development.
Leveraging Total Eren’s 2 GW operational assets in merchant countries like Portugal, Greece, Australia, and Brazil will bolster TotalEnergies’ integrated power strategy.
The company will also capitalize on Total Eren’s capabilities in developing projects in nations such as India, Argentina, Kazakhstan, or Uzbekistan.
Beyond contributing top-tier operated assets, Total Eren will bring the expertise and skills of nearly 500 professionals spanning over 20 countries.
This portfolio will reinforce TotalEnergies’ capacity to achieve production growth while optimizing operational costs and capex through the leverage of its size and purchasing power.
In addition to its role as a renewable energy producer, Total Eren has initiated groundbreaking green hydrogen projects in various regions like North Africa, Latin America, and Australia.
These green hydrogen initiatives will continue through a new partnership, “TEH2,” with 80% ownership by TotalEnergies and 20% by the EREN Group.
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