Total Plans to Acquire Direct Énergie for €2.5 Billion

Cleary Gottlieb is advising Total, a global integrated energy producer and provider, and a leading international oil and gas company, in connection with the acquisition of Direct Énergie, France’s leading alternative energy player.

This transaction will enable Total to pursue its ambitious development program to become a standard-setting player in electricity supply in France and Belgium, targeting over six million customers in France and more than one million customers in Belgium by 2022. Total is also pursuing and expanding its development in the power generation market, with Direct Énergie’s power generation activities complimenting those of the Total group’s subsidiaries operating in these fields.

The transaction consists of the acquisition by Total of shares from Direct Énergie’s main shareholders, representing approximately 74.33 percent of Direct Énergie’s share capital, at a price of €42 per share, which will be followed by the launch by Total of a full-cash mandatory tender offer at the same price on the remaining Direct Énergie’s shares. The acquisition from Direct Énergie’s main shareholders is subject to antitrust clearance from the European commission, which is expected in Q3 2018.

The transaction values Direct Énergie at approximately €2.5 billion (enterprise value).