Total agrees to buy Direct Energie

EPA/ETIENNE LAURENT/FILE PICTURE

French energy group Total CEO Patrick Pouyanne.

Total wants to establish itself as a leading alternative supplier by combining its 1.5 million client portfolio with Direct Energie’s 2.6 million client portfolio


Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

French energy major Total said on April 18 the company has entered into an agreement with the controlling shareholders of Direct Energie for the proposed acquisition of 74.33% of its share capital, at a price of €42 per share, ex-dividend of €0.35 per share, representing an aggregate acquisition price of approximately €1.4 billion.

In connection with this agreement and the tender offer memorandum entered into with Direct Energie, Direct Energie’s Board of Directors met on April 17 and unanimously approved the transaction.

“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,” Total CEO Patrick Pouyanné said. “We are delighted to welcome the Direct Energie teams into Total, who will contribute their skills in the field of electricity and who will be at the heart of the Group’s growth ambition in this field.”

For his part, Direct Energie CEO Xavier Caïtucoli hailed this transaction. “We are convinced that combining with Total will be to the benefit of our customers,” he said. “The Direct Energie teams will be at the heart of the strategy of one of the greatest French companies. I have no doubt that their hard work, creativity and talents will allow the new entity to expand its ambitions,” he added.

In the field of natural gas and electricity distribution to both consumers and professionals, Total said the French company is firmly establishing itself as a leading alternative supplier by combining its 1.5 million client portfolio with Direct Energie’s 2.6 million client portfolio. This combination will enable Total to pursue its ambitious development program to become a standard-setting player in electricity supply in France and Belgium, targeting over 6 million customers in France and more than 1 million customers in Belgium by 2022.

With this transaction, Total is also pursuing and expanding its development in the power generation market, with Direct Energie’s power generation activities offering an excellent complementarity with those of the Total group’s subsidiaries operating in these fields.

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+