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TotalEnergies signs 5.1 billion Euro deal with Kretinsky’s EPH to enhance European power portfolio

TotalEnergies signs 5.1 billion Euro deal with Kretinsky’s EPH to enhance European power portfolio
TotalEnergies signs 5.1 billion Euro deal with Kretinsky’s EPH to enhance European power portfolio

TotalEnergies, the French oil giant, announced on Monday that it had agreed to purchase 50% of EPH's flexible energy generation platform in Western Europe. The deal is a stock-only transaction worth 5.1 billion euros ($5.92 billion). EPH, which is majority owned by Czech billionaire Daniel Kretinsky will receive 5.92 billion euros in TotalEnergies stock under the agreement. This makes EPH one of TotalEnergies' largest shareholders, with 4.1% of their capital.

TotalEnergies is pursuing a strategy to become the leading integrated electricity provider in Europe by combining renewables and flexible generation in order to meet growing demand in sectors like data centres.

The transaction creates a joint venture that will manage gas-fired plants, biomass plants, and battery systems in Italy, UK, Ireland and France.

Kretinsky is one of Europe's leading energy and media investors. He also owns stakes in Royal Mail, a French retailer, and Casino.

TotalEnergies anticipates that the transaction will immediately increase free cash flow per shares and bring forward a positive cash contribution to its Integrated Power Segment to 2027, from previously 2028.

The completion date is mid-2026, pending regulatory approval.

(source: Reuters)