Total to acquire majority stake in Direct Energie for $1.7bn

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French oil major Total has agreed to acquire a majority stake in French electricity retailer Direct Energie for €1.4bn ($1.73bn), in a bid to strengthen its position in the electricity supply market in France and Belgium.

Under the terms of the deal, Total will acquire 74.33 % of controlling stake in Direct Energie from Impala and other investors at a price of €42 per share.

Total said that the acquisition will contribute to its aim to become a standard-setting player in power supply in France and Belgium. The firm is targeting over 6 million customers in France and more than one million in Belgium by 2022.

The acquisition will enable Total to add Direct Energie’s 2.6 million client portfolio to its 1.5 million client portfolio. Within five years, Total intends to have at least 10GW of installed global capacity from gas-fired power plants and renewable projects.