Direct Energie Advances our Ambition in Gas and Power

On April 18, Total announced plans to acquire 74% of Direct Energie’s share capital and subsequently take full control of the energy retailer.

Total’s role is to provide the cleanest possible energy to as many people as possible, at the lowest possible cost. Our expansion along the integrated gas and power value chain definitely helps us do that. By acquiring in Lampiris 2016 and rolling out Total Spring in France in October 2017, Total made it clear that we intended to become a force to be reckoned with in the retail gas and power markets in France and Belgium.

Acquiring Direct Energie gives us access to a customer portfolio, power generation assets and nearly 15 years of recognized expertise. The merger will boost our growth in this segment, making us the top alternative supplier.

With the acquisition, we’re now aiming for 6 million customers in 2022, up from 2 million to 3 million with Total Spring alone. As we’ve seen in our Marketing & Services’s marketing businesses, critical mass is crucial. First, for customers. The more customers there are, the lower the fixed costs, the more competitive the offering. Combining Total Spring and Direct Energie will give us a 7% market share in France. That could rise to 15% in five years’ time by harnessing both companies’ growth momentum and capturing the obvious synergies between them. The deal is a guarantee of growth.

In 2016, Direct Energie also moved into gas-fired and renewable electricity production — which is our strategy, too. Its assets will add production capacity to our portfolio — we’re aiming for more than 10 GW of gas-fired and renewables capacity within 5 years. All that is fully aligned with our strategy of having low-carbon businesses account for 20% of our assets in 20 years’ time.

We are delighted to welcome the Direct Energie teams into Total, who will contribute their skills in the field of electricity and who will be at the heart of Total’s growth ambition in this field!

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This article is also available in french.