TotalEnergies has agreed to acquire 50% of EPH’s flexible power generation platform, including gas-fired and biomass plants and battery systems, according to the company.
TotalEnergies said the €10.6bn enterprise-value transaction covers more than 14GW of flexible generation in operation or under construction across Italy, the UK, Ireland, the Netherlands and France.
The company said the assets include battery systems in all four markets, with 0.4GW under construction in the UK and Ireland, 0.2GW under construction in the Netherlands and 100MW under construction in France.
Under the agreement, EPH will receive €5.1bn in TotalEnergies shares, representing about 4.1% of the company’s share capital.
TotalEnergies said the deal will create a 50/50 joint venture responsible for industrial management and development of the portfolio, with each partner marketing its share of production under a tolling arrangement.
The company said the transaction strengthens its Integrated Power strategy by combining intermittent renewables with flexible generation and batteries.
TotalEnergies added that the platform’s secured capacity revenues represent 40% of the gross margin.
The company said the assets include 7.5GW in Italy, 7.1GW in the UK and Ireland, 3.6GW in the Netherlands and 1.1GW in France.
TotalEnergies said the acquisition also covers around 5GW of projects under development.
The company said the transaction is immediately accretive for shareholders and will increase available cash flow by about $750m per year over the next five years.
TotalEnergies added that Integrated Power will generate positive free cash flow from 2027 rather than 2028 and that ROACE for the segment will rise from 10% to 12% over the next five years.
The company said it will reduce annual net capex guidance for 2026-2030 by $1bn to $14bn-$16bn, including $2bn-$3bn for Integrated Power.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said: “This acquisition marks another major milestone in TotalEnergies’ strategy to build an integrated electricity player in Europe.”
He said: “By joining forces with EPH as part of a long-term partnership, we are accelerating the implementation of our Integrated Power strategy and strengthening our ability to provide reliable, competitive, and low-carbon energy to our customers by leveraging the complementarity of our renewable and flexgen portfolio.”
He added: “Given our position as the #1 gas supplier in Europe, this transaction enables us to fully capitalize on gas-to-power integration and create added value for our LNG chain, independently of oil cycles.”
Daniel Kretinsky, Chairman of the Board of EPH, said: “This transaction is founded on our strong appreciation of TotalEnergies, its management team led by Patrick Pouyanné and its strategy.”
He added: “We are both highly interested in becoming a long-term anchor shareholder of TotalEnergies and excited to create a joint venture which is already today a leading player in European flexible power generation.”
TotalEnergies said completion is expected in mid-2026 subject to regulatory and employee processes.