- TotalEnergies acquires 50% of EPH's flexible power assets in a €5.1 billion all-stock transaction.
- The joint venture will manage over 14 GW of flexible generation assets across Europe.
- The transaction is expected to be completed by mid-2026, pending regulatory approvals.
- TotalEnergies' annual Capex guidance is reduced by $1 billion to $14-16 billion for 2026-2030.
Transaction Overview
TotalEnergies has signed an agreement to acquire 50% of EPH's flexible power generation platform in Western Europe, valued at €10.6 billion. The deal involves issuing 95.4 million TotalEnergies shares to EPH, making it one of the largest shareholders.
Joint Venture Details
The transaction establishes a 50/50 joint venture between TotalEnergies and EPH, managing over 14 GW of flexible generation assets, including gas-fired and biomass power plants and battery systems. The joint venture will focus on industrial management and business development, while each company markets its share of production.
Strategic Impact
This acquisition aligns with TotalEnergies' Integrated Power strategy, enhancing its position in European electricity markets. It strengthens the company's ability to balance intermittent renewable power with flexible generation and expands its power trading activities across Europe.
Financial Implications
The transaction is immediately accretive to TotalEnergies' shareholders, with an expected increase in available cash flow of about $750 million per year. The company's annual Capex guidance is reduced by $1 billion to $14-16 billion for 2026-2030, while maintaining its 2030 electricity generation target of 100-120 TWh.
Completion Timeline
The transaction is subject to regulatory approvals and the legal information and consultation process of relevant employee representatives, with completion expected by mid-2026.
