Total Energies has announced the acquisition of the other shareholders of Total Eren, increasing its stake from almost 30% to 100%, enabling profitable growth in the renewable energy sector. The Total Eren team will be fully integrated within TotalEnergies’ renewable energy business unit. The deal follows the strategic agreement TotalEnergies signed with Total Eren in 2017, which gave TotalEnerges the right to acquire all of Total Eren (formerly Eren RE) after five years.
As part of the deal, Total Eren has an enterprise value of 3.8 billion euros ($4.9 billion), based on an attractive EBITDA multiple negotiated in an initial strategic agreement signed in 2017. The acquisition resulted in a net investment of about 1.5 billion euros ($1.65 billion) for TotalEnergies.
A global player with 3.5 GW of renewable energy production and a 10 GW pipeline. Total Eren has 3.5 GW of renewable energy capacity globally and a pipeline of more than 10 GW of solar, wind, hydro and storage projects in 30 countries, of which 1.2 GW is under construction or in advanced development. TotalEnergies will build its integrated power strategy using the 2 GW of assets Total Eren operates in these countries, notably Portugal, Greece, Australia and Brazil. TotalEnergies will also benefit from Total Eren’s footprint and ability to develop projects in other countries such as India, Argentina, Kazakhstan or Uzbekistan.
Complementary to TotalEnergies footprint and workforce. Total Eren will contribute not only high-quality operating assets, but also the expertise and skills of nearly 500 people from more than 20 countries. The team and quality of Total Eren’s portfolio will strengthen TotalEnergies’ ability to grow production while optimizing its operating costs and capital expenditures by leveraging its scale and purchase bargaining power.
A pioneer in green hydrogen. As a renewable energy producer, Total Eren has launched pioneering green hydrogen projects in several regions including North Africa, Latin America and Australia in recent years. These green hydrogen activities will be carried out through a new partnership of entities called “TEH2” (80% owned by TotalEnergies and 20% by EREN Group).
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said: “Our partnership with Total Eren has been very successful, as evidenced by the size and quality of our renewable energy portfolio. With the acquisition and integration of Total Eren, we are now opening This new chapter of our growth, as the expertise of its team and its complementary geographic footprint will strengthen our renewable energy activities, as well as our ability to build a profitable integrated power company.”
Post time: Jul-26-2023
