Czech billionaire Daniel Křetínský is set to become one of the largest shareholders in TotalEnergies after selling a stake in his electricity generation business, which includes several UK power plants, to the French oil company.
Křetínský, whose companies hold stakes in Royal Mail and West Ham United football club, agreed to sell a 50% stake in his portfolio of European power plants to TotalEnergies for about €5.1 billion (£4.5 billion) in exchange for roughly 4.1% of TotalEnergies’ shares.
This deal will make his power generation firm, Energetický a průmyslový holding (EPH), one of the French company’s biggest investors. It also means TotalEnergies will gain a share in a range of electricity generation assets across the UK, France, the Netherlands, and Italy through a new joint venture.
Křetínský, the chairman of EPH, expressed his company’s strong interest in becoming a long-term anchor shareholder of TotalEnergies and in creating a joint venture that would be a leading player in flexible power generation in Europe.
Known as the Czech sphinx, Křetínský became the first foreign owner of Royal Mail in its 509-year history after completing a deal to buy its parent company earlier this year. Ranked 22nd on the Sunday Times rich list with an estimated fortune of £7.79 billion, he built much of his wealth through coal, gas, and power generation operations.
He also owns 27% of West Ham United, 10% of the Sainsbury’s supermarket chain, and stakes in several retailers, including the US department store Macy’s, the footwear retailer Foot Locker, and the German wholesaler Metro.
Under the TotalEnergies agreement, a new 50/50 joint venture will own enough UK power stations to meet the electricity needs of over 3 million homes, including the Lynemouth power station in Northumberland and the Kilroot plant in Northern Ireland.
This partnership will provide TotalEnergies, a major importer of liquefied natural gas into Europe, with a network of customers for its gas and help expand its power trading activities across the continent.
Patrick Pouyanné, TotalEnergies’ chairman and CEO, stated, “Given our position as the number one gas supplier in Europe, this transaction enables us to fully capitalize on gas-to-power integration and create added value for our LNG chain, independently of oil cycles.”
TotalEnergies remains one of the largest oil and gas producers operating in the UK’s North Sea basin and is also developing offshore wind farms in UK waters as well as solar farms in England and Wales.
In a separate development, Eclipse Power Networks, part of the Octopus Group, has agreed to buy about 20 electricity distribution projects across the UK from Sweden’s state-owned energy company, Vattenfall, for an undisclosed sum. This acquisition brings these assets under the Octopus Group, which also includes Octopus Energy, Britain’s largest energy supplier. The deal marks Vattenfall’s exit from the UK electricity distribution market, though its other UK operations, including onshore and offshore wind farms, will continue.
Frequently Asked Questions
Of course Here is a list of FAQs about TotalEnergies acquisition of a stake in a Czech power business designed to be clear and helpful for a wide audience
Beginner General Questions
1 What exactly happened in this deal
TotalEnergies a major French energy company has purchased a significant share in a portfolio of power plants owned by a Czech businessman Daniel Ketínsk
2 Who is Daniel Ketínsk
He is a prominent Czech investor and billionaire often called the Czech Sphinx known for his major investments in energy logistics and sports across Europe
3 What kind of power plants did TotalEnergies invest in
The investment is in a collection of gasfired and coalfired power plants as well as district heating systems located primarily in the Czech Republic
4 Why is this deal so big
At 51 billion its one of the largest energy transactions in Europe recently signaling a major strategic shift for both companies and impacting the continents energy landscape
Strategic Motivational Questions
5 Why would TotalEnergies want to buy into power plants
TotalEnergies is strategically moving from being primarily an oil and gas company to becoming a broader integrated power player This means they want to generate and sell electricity directly to customers as the world shifts towards electrification
6 What does TotalEnergies gain from this
They gain immediate scale in the European power market a diversified energy production portfolio and a stronger foothold in Central Europe to supply electricity to millions of customers and industries
7 Why would the Czech seller agree to this
Selling a large stake brings in a massive amount of capital partners with a global energy giant for future projects and shares the financial risk and responsibility of transitioning these power plants to cleaner energy
Advanced ImpactRelated Questions
8 Does this investment conflict with TotalEnergies stated goals to be net zero
This is a key point of discussion While the portfolio includes some coal assets a major part of the deal includes a commitment to rapidly phase out coal and invest heavily in renewable energy and carbon capture technologies for the gas plants
9 How does this affect the European energy market
It consolidates power generation assets under a
