TotalEnergies is acquiring 50% of EPH’s power generation platform in Western Europe for $5.92bn in an all-stock deal. The assets include flexible generation assets in several countries, totaling over 14GW of capacity. The transaction will establish a joint venture to manage the assets and drive business development. Additionally, the deal is expected to add 15TWh of electricity production per year and diversify value creation across the gas value chain.

The deal will be paid entirely in new TotalEnergies shares, totaling 95.4 million shares priced at €53.94 each. The issuance represents about 4.1% of TotalEnergies’ share capital. The joint venture between TotalEnergies and EPH will become the preferred vehicle to drive flexible power generation growth in selected countries. This move is part of TotalEnergies’ strategy to become an integrated electricity player in Europe, providing reliable, competitive, and low-carbon energy to customers.

TotalEnergies anticipates an increase in available cash flow of $750m per year over the next five years as a result of the acquisition. This accelerated growth strategy has prompted the company to lower its annual net capital expenditure guidance by $1bn to $14-$16bn per year for 2026-2030. The Integrated Power segment is expected to generate positive free cash flow and contribute to shareholder returns starting in 2027.

The transaction is subject to legal and consultation procedures with relevant employee representatives and approval from competent authorities. Completion is expected by mid-2026. TotalEnergies aims to leverage its position as the top gas supplier in Europe to create lasting value for shareholders through the partnership with EPH.

Read more at Yahoo Finance: TotalEnergies to buy 50% of EPH’s power assets for $5.9bn