TotalEnergies has agreed to take full ownership of French renewable energy developer Total Eren, formerly known as EREN Renewable Energy, in a deal worth around €1.5bn.
Through the acquisition of the remaining 70.8% interest in Total Eren, TotalEnergies will increase its stake in the former from approximately 30% to 100%.
The transaction follows the agreement signed between the parties in 2017, which gave the French energy major the right to acquire the remaining stake in Total Eren after a period of five years.
Based on the EBITDA multiple negotiated in the initial agreement, Total Eren is valued at an enterprise value of €3.8bn.
As part of the deal, Total Eren’s teams will be fully integrated within the renewables business unit of TotalEnergies.
The integration is expected to bring an increase in the energy major’s integrated power net operating income of about €160m and cash flows from operations of nearly €400m in 2024.
TotalEnergies chairman and CEO Patrick Pouyanné said: “With the acquisition and integration of Total Eren. we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player.”
Established in 2012, Total Eren owns 3.5GW of renewable capacity in operation across the globe as well as a pipeline of solar, wind, hydroelectric, and storage projects of more than 10GW, which are spread over 30 countries.
In 2017, TotalEnergies (then known as Total) purchased an indirect interest in EREN Renewable Energy by subscribing to a capital increase of €237.5m. Following this, EREN Renewable Energy was renamed Total Eren.
Total Eren chairman Pâris Mouratoglou said: “With Total Eren, we have successfully created a best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their constant support since 2015.”
In September 2022, Total Eren joined forces with Chariot to develop a large-scale green hydrogen project in Mauritania.
