PARIS — November 17, 2025. TotalEnergies has agreed to acquire a 50% stake in Energetický a průmyslový holding’s (EPH) flexible power generation platform in a €5.1 billion, all‑stock transaction. The deal creates a 50/50 joint venture spanning more than 14 gigawatts (GW) of gas‑fired, biomass and battery assets across Italy, the UK & Ireland, the Netherlands and France, with closing targeted for mid‑2026 pending approvals. EPH will be paid in newly issued TotalEnergies shares and become a meaningful shareholder in the French energy major. [1]
Key facts at a glance
- Price & structure: €5.1bn all‑stock consideration for a 50% stake in EPH’s power platform; the venture will be owned and operated on a 50/50 basis. [2]
- Scale:14+ GW of flexible assets (gas, biomass, batteries) in Western Europe, plus a development pipeline of c. 5 GW. [3]
- Valuation: Portfolio valued at €10.6bn enterprise value, implying 7.6× 2026 EBITDA. [4]
- Consideration details:95.4 million new TotalEnergies shares to be issued at a reference price of €53.94, leaving EPH with about 4.1% of TotalEnergies’ share capital post‑deal. [5]
- Financial impact: Management expects the transaction to be immediately accretive to free cash flow per share; the company also highlighted an additional c. $750m in available cash flow per year over the next five years and trimmed 2026–2030 net capex guidance by $1bn/year to $14–16bn. [6]
- Commercial setup: Each partner will market its share of power via a tolling arrangement with the JV operating the assets. [7]
Why this deal matters
For TotalEnergies, the acquisition accelerates a strategy to marry intermittent renewables with “clean firm” capacity that can balance grids and serve large, round‑the‑clock loads such as data centers. The company also points to tighter gas‑to‑power integration in Europe, leveraging its leading LNG supply position; management estimates the incremental power output enables value capture linked to roughly 2 million tpa of LNG. [8]
Reuters notes the tie‑up more than doubles TotalEnergies’ net gas plant exposure and pulls forward profitability milestones in its Integrated Power segment—now expected to generate positive free cash flow in 2027 rather than 2028—while keeping the 2030 electricity production target at 100–120 TWh. [9]
What’s in the portfolio
The JV aggregates dispatchable capacity across key power markets in Italy, the UK & Ireland, the Netherlands and France—assets that typically earn a portion of revenues from capacity mechanisms, providing earnings visibility and balancing support to renewables‑heavy systems. (TotalEnergies says secured capacity revenues account for ~40% of gross margin across the portfolio.) [10]
Terms and shareholder implications
Under the share‑only consideration, EPH—controlled by Czech investor Daniel Křetínský—will become one of TotalEnergies’ larger shareholders at around 4.1% ownership on completion. The €5.1bn consideration comes entirely via newly issued equity rather than cash, preserving TotalEnergies’ balance sheet while aligning EPH as a long‑term partner in European power. [11]
Market and strategy context
Coverage from the Financial Times framed the transaction as a move that deepens TotalEnergies’ European power footprint and complements its existing renewables base, with shares up about 0.5% following the announcement. [12]
More broadly, the JV arrives as European grids rely on flexible thermal and storage capacity to firm rising volumes of wind and solar. TotalEnergies’ emphasis on LNG‑to‑power integration and “clean firm power” suggests a commercial focus on data‑center demand growth and volatility in wholesale power markets—areas where trading and flexible assets can create optionality. (Company emphasis on these strategic benefits comes directly from today’s announcement.) [13]
Closing timeline and next steps
The partners expect to finalize the transaction by mid‑2026, subject to works council procedures and regulatory approvals in the EU and UK. Once closed, the new JV will serve as the preferred vehicle for further flexible‑power growth in the target countries. [14]
Deal terms (quick reference)
- Buyer/Partner: TotalEnergies (France)
- Seller/Partner: EPH (Czech Republic)
- Stake: 50% of flexible power platform (gas, biomass, batteries)
- Consideration: €5.1bn in newly issued TotalEnergies shares (c. 95.4m shares at €53.94) → ~4.1% stake for EPH
- Portfolio scale: 14+ GW operating/under construction; ~5 GW pipeline
- Strategic levers: Data‑center demand, LNG‑to‑power, capacity markets, trading
- Guidance updates: +$750m/yr cash flow uplift (next five years); capex cut to $14–16bn/yr (2026–2030)
- Expected close: mid‑2026 (regulatory/consultation steps) [15]
Reporting based on company disclosures and same‑day coverage by major outlets. [16]
References
1. totalenergies.com, 2. www.reuters.com, 3. totalenergies.com, 4. totalenergies.com, 5. totalenergies.com, 6. www.reuters.com, 7. totalenergies.com, 8. totalenergies.com, 9. www.reuters.com, 10. totalenergies.com, 11. totalenergies.com, 12. www.ft.com, 13. totalenergies.com, 14. totalenergies.com, 15. totalenergies.com, 16. totalenergies.com
