TotalEnergies has announced a significant deal to acquire a 50% stake in Czech energy company EPH’s flexible power generation platform in Western Europe, valued at €5.1 billion ($5.92 billion) in an all-stock transaction. This acquisition more than doubles TotalEnergies’ net gas generation capacity, advancing its strategy to integrate renewable energy and gas-fired generation in response to rising demand, particularly from data centres. EPH, primarily owned by billionaire Daniel Kretinsky, will become a major shareholder in TotalEnergies, holding approximately 4.1% of its capital.
The deal is part of TotalEnergies’ efforts to optimize its asset portfolio amidst investor pressure to reduce debt and offload less profitable acquisitions. Analysts suggest that this transaction positions TotalEnergies favorably in the flexible generation sector, creating a 50-50 joint venture that will manage a portfolio of over 14 gigawatts of gas-fired, biomass plants, and battery systems across several European countries, including Italy, the UK, and France.
By adding an estimated 15 terawatt-hours of annual electricity production, TotalEnergies anticipates generating cash flow from this integrated power model beginning in 2027, which is a year earlier than previously expected. Additionally, the transaction is designed to enhance TotalEnergies’ liquidity by capturing value from approximately 2 million tons of LNG annually and is expected to contribute positively to cash flow per share immediately.
TotalEnergies has also adjusted its capital expenditure guidance to $14 billion to $16 billion for the 2026-2030 period while maintaining its production target of 100-120 terawatt-hours by 2030. The completion of this partnership is anticipated by mid-2026, pending regulatory approvals.