TotalEnergies announced on Tuesday that it would increase its stake in renewable energy company Total Eren from 30% to full ownership.
As part of the transaction, Total Eren will be valued on an enterprise value basis at EUR 3.8 billion, the energy giant 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,” TotalEnergies Chairman and Chief Executive Officer Patrick Pouyanne was quoted as saying by Reuters.
The integration of Total Eren is expected to bolster TotalEnergies’ integrated power net operating income by about EUR 160 million.
The shares of TotalEnergies SE (TTEF) were last losing 0.57% (EUR 0.31) to trade at EUR 54.48 in Paris on Tuesday, while snapping a five-day streak of gains.
The energy giant’s total market cap now stands at EUR 132.244 billion.
The shares of TotalEnergies SE went up 31.41% in 2022, compared with a 9.50% loss for the benchmark index, CAC 40 (FCHI).
The shares have retreated 7.11% so far this year.