TotalEnergies SE (NYSE:TTE) on Monday disclosed that it will acquire a 50% stake in the flexible power generation portfolio from Energetický a průmyslový holding, a.s. (EPH) at an enterprise value of 10.6 billion euros ($12.3 billion).
Portfolio Details
The acquisition spans a portfolio of over 14 GW of flexible generation capacity, gas-fired plants, biomass facilities, and batteries, either in operation or under construction.
These assets are located across Italy (7.5 GW), the U.K. & Ireland (7.1 GW), the Netherlands (3.6 GW), and France (1.1 GW).
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The deal includes roughly 5 GW of projects under development.
Monetary Aspect
The portfolio covers gas-fired plants, biomass facilities, and batteries across Italy, the U.K., Ireland, the Netherlands, and France.
The acquisition price reflects a 7.6x projected 2026 EBITDA.
As part of the deal, EPH will receive 5.1 billion euros worth of TotalEnergies shares.
Notably, TotalEnergies will issue 95.4 million new shares at a volume-weighted average price of 53.94 euros from the twenty trading days before November 16.
The deal establishes a 50/50 joint venture between TotalEnergies and EPH that will oversee asset operations and drive future growth.
Each company will separately market its portion of the output through a tolling agreement with the joint venture.
The acquisition is expected to close in mid-2026.
Post-closure, EPH will have roughly 4.1% ownership of the company and position it among the company’s largest shareholders.
As of September 30, TotalEnergies’ cash and cash equivalents stood at $23.4 billion.
Benefits & Synergies
The transaction advances TotalEnergies’ Integrated Power strategy by pairing renewables with flexible gas- and battery-based generation, expanding its European power-trading footprint and enabling a Clean Firm Power offering to meet rising data-center demand.
In particular, the deal adds around 15 TWh/year of net electricity production, allowing the company to capture bonus value from approximately 2 Mtpa of LNG.
The deal is expected to boost annual free cash flow by around $750 million over the next five years, well above the extra dividend for the new shares.
With this deal, the Integrated Power segment is expected to generate positive free cash flow and contribute to shareholder returns as early as 2027, while raising its ROACE from 10% to 12% over five years.
Consequently, the company is cutting its annual net capital expenditure outlook by $1 billion to $14–$16 billion for 2026–2030 and allocating $2–$3 billion to Integrated Power.
TotalEnergies says it is on track to reach 100–120 TWh of electricity generation by 2030.
Price Action: TTE shares are down 0.15% at $65.30 premarket at the last check on Monday.
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