In a landmark energy sector transaction, French oil giant TotalEnergies has acquired a substantial stake in Czech billionaire Daniel Křetínský's power generation business, making him one of the largest shareholders in the French company.
The £5.1 Billion Power Deal
The agreement will see TotalEnergies purchase a 50% stake in Energetický a průmyslový holding (EPH), Křetínský's electricity generation portfolio, for approximately €5.1 billion (£5.1bn). In exchange, Křetínský will receive about 4.1% of TotalEnergies' share capital, positioning his company as a significant investor in the French energy multinational.
This transaction creates a new 50:50 joint venture that will control numerous power generation assets across Europe, including several strategic facilities within the United Kingdom. The combined UK power stations within this venture possess sufficient capacity to meet the electricity demands of more than 3 million British homes.
Křetínský's Expanding UK Portfolio
Daniel Křetínský, often referred to as the 'Czech Sphinx', has built substantial interests across the UK economy beyond the energy sector. His investment vehicle recently made history by becoming the first foreign owner of Royal Mail in its 509-year history after acquiring its parent company earlier this year.
The billionaire, ranked 22nd on the Sunday Times rich list with an estimated fortune of £7.79 billion, also maintains:
- 27% stake in West Ham United football club
- 10% ownership of Sainsbury's supermarket chain
- Additional investments in various retailers including Macy's and Foot Locker
Strategic Benefits for TotalEnergies
Patrick Pouyanné, TotalEnergies' chairman and chief executive, emphasised the strategic importance of this acquisition for the company's European operations. "Given our position as the number one gas supplier in Europe, this transaction enables us to fully capitalise on gas-to-power integration and create added value for our LNG chain, independently of oil cycles," he stated.
The deal provides TotalEnergies, which is a major importer of liquefied natural gas (LNG) into Europe, with an established network of customers for its gas supplies while significantly expanding its power trading activities across the continent.
TotalEnergies maintains substantial operations within the UK energy landscape, being one of the largest oil and gas producers still operating in the North Sea basin. The company is concurrently developing offshore wind farms in UK waters alongside solar farm projects across England and Wales.
Broader UK Energy Market Developments
In separate energy sector news, Octopus Group's electricity networks company has agreed to acquire approximately 20 electricity distribution projects across the UK from Swedish state-owned energy firm Vattenfall.
Eclipse Power Networks will take ownership of Vattenfall's independent energy networks for an undisclosed sum, bringing these assets under the Octopus Group umbrella alongside Octopus Energy, which currently serves as Britain's largest energy supplier.
This transaction marks Vattenfall's complete exit from the UK electricity distribution market, though the Swedish company will continue operating its other British assets including onshore and offshore wind farms.
