From The Telegraph, November 17:
Billionaire will sell half of his Eastern European power business for shares in TotalEnergies
The billionaire owner of Royal Mail is to become one of the biggest shareholders in French oil giant TotalEnergies in a deal worth €5.1bn (£4.5bn).
Daniel Křetínský is poised to become Total’s fourth biggest shareholder after striking a deal to sell half of his Eastern European power business EPH to the French company in exchange for shares.
The Czech billionaire will get 4.1pc of shares in Total, one of the biggest oil firms in the world.
Under the terms of the deal, a newly launched joint venture will take control of a selection of EPH’s gas and biomass-fired power plants and battery developments in Britain, Ireland, Italy, France and the Netherlands.
Total is hoping to bolster its position in some of the world’s most profitable electricity markets at a time when power demand is expected to surge because of the build out of data centres.
Total said the new power plants will also give it a way to make higher profits from its business exporting liquefied natural gas (LNG) into Europe from the US, by providing it with a new network of power plants to supply.
EPH will continue to fully own its commodities business, its transmission infrastructure business, its Slovakian power generation company and the remainder of its central European assets.
The deal comes as the oil and gas industry rolls back its focus on net zero and comes as a vindication of Mr Křetínský’s contrarian push to buy up fossil fuel assets across Europe.
Patrick Pouyanné, Total’s chief executive, said: “This acquisition marks another major milestone in TotalEnergies’ strategy to build an integrated electricity player in Europe.”
Mr Křetínský added: “Through our shareholding in TotalEnergies, we are implementing our strategic ambition to diversify and reduce our geographic exposure, which is currently concentrated in the EU and UK.”
Mr Křetínský is worth almost £8bn and best known in Britain as the first foreign owner of the Royal Mail in its 509-year history. The Czech businessman also owns a 27pc stake in West Ham United and a 10pc stake in Sainsbury’s....
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Recently on the power pivot:
November 12 - French Oil Supermajor TotalEnergies agrees renewable power deal with Google for Ohio data centres
And earlier:
May 2022 - French Oil Major, Total, Puts Another $2.4 Billion Into Wind and Solar
