What's Happening?
TotalEnergies has entered into a €5.1 billion ($5.5 billion) all-stock agreement to acquire a 50% stake in EPH’s flexible power generation platform. This strategic move aims to expand TotalEnergies' gas-to-power integration across Europe, creating a joint
venture with over 14 GW of flexible generation capacity, including gas-fired plants, biomass facilities, and battery systems. The acquisition is expected to increase TotalEnergies' electricity production to 20 TWh by 2030, positioning the joint venture as one of Europe’s largest flex-gen operators. The deal will be funded by issuing 95.4 million shares to EPH, making EPH one of TotalEnergies' largest shareholders.
Why It's Important?
This acquisition is significant as it strengthens TotalEnergies' position in Europe's electricity markets, particularly in Italy, the UK, Ireland, the Netherlands, and France. By enhancing its gas-to-power integration, TotalEnergies aims to balance intermittent renewable energy sources with dispatchable, gas-fired generation, a core component of its Integrated Power strategy. The deal is expected to be immediately accretive to free cash flow per share, adding approximately $750 million annually over the next five years. This move reflects a long-term commitment to energy transition strategies and positions TotalEnergies to capitalize on Europe's rapidly evolving energy landscape.
What's Next?
The transaction is subject to regulatory and employee-consultation processes, with completion anticipated by mid-2026. TotalEnergies plans to reduce its net Capex guidance to $14–16 billion per year for 2026–2030, including $2–3 billion annually for power investment. The partnership with EPH is expected to strengthen both companies' positions in Europe's shifting energy markets, potentially influencing future investments and strategic decisions in the region.
