French energy giant Total is to acquire a controlling interest in compatriot company Direct Energie for about €1.4bn to accelerate moves into electricity and gas markets in France and Belgium.
Total has agreed buy 74.33% of Direct Energie’s shares at a price of €42 a share. The offer represents a 30% premium above the closing share price on 17 April.
The board of directors of Direct Energie have unanimously approved the transaction and will recommend the offer to shareholders, subject to the confirmation by an independent expert that the terms are fair.
Direct Energie has installed capacity of totalling 1.35GW, including 550MW of operating renewable energy plants and a further 2GW development pipeline.
Total chairman and chief executive Patrick Pouyanne said: “Through this transaction, Total is actively pursuing its development in electricity and gas generation and distribution in France and Belgium.
“This friendly takeover is part of the group’s strategy to expand along the entire gas-electricity value chain and to develop low-carbon energies, in line with our ambition to become the responsible energy major.”
Direct Energie chairman and chief executive Xavier Caitucoli said: “We welcome this transaction with pride and enthusiasm and we are convinced that combining with Total will be to the benefit of our customers.”
The transaction is subject to an information and consultation process with relevant employee representative bodies and also requires European Commission approval.
It is expected to be completed during the third quarter of this year and will be financed through Total’s available cash.
Image: Pexels
Total makes Direct move
By EBS