Total refinery in Donges, France. Photo: Loic Venance/AFP via Getty Images
France-based multinational oil giant Total announced Wednesday that it's acquiring a 74% stake in the big French electricity company Direct Energie.
Why it matters: It's another sign that European oil giants are increasingly entering the electricity and vehicle electrification space, a move driven in part by pressure from climate policy to diversify their businesses.
- The deal is valued at 1.4 billion euros and represents Total's latest move into the power space.
- It's also Total's biggest investment in low-carbon power thus far, the consultancy Wood Mackenzie said in a brief note Wednesday.
"This friendly takeover is part of the [Total] Group’s strategy to expand along the entire gas-electricity value chain and to develop low-carbon energies, in line with our ambition to become the responsible energy major."— Total CEO Patrick Pouyanné said in a statement.