TotalEnergies has completedits planned takeover of renewable energy offshoot Total Eren by buying out all other shareholders in the company after receiving approval from European Union regulators to do so back in April.

Buying up the 70.8% of the equity in Total Eren that it did not already possess represents a net investment of around €1.5 billion ($1.7 billion) to TotalEnergies, the oil and gas major stated.

Total Eren, in which TotalEnergies first took a stake in 2017, has commissioned about 3.5GW of renewable energy capacity worldwide to date.

The deal follows a strategic agreement signed between TotalEnergies and Total Eren in 2017, which granted TotalEnergies the right to acquire all of the latter after a five-year period.

The price was based on a multiple of Total Eren's earnings before interest, tax, depreciation and amortisation (Ebitda)), and valued the company at around €3.8bn.

Total Eren has a pipeline of solar, wind, hydroelectric and energy storage projects of over 10 GW in 30 countries, with 1.2GW of this in construction or in late-stage development, TotalEnergies said in a statement.

The transaction will strengthen TotalEnergies' own renewables portfolio, which at the end of 2022 had capacity for gross renewable power totalling 17GW.

TotalEnergies said it will leverage Total Eren’s 2GW assets in operation in merchant countries, notably Portugal, Greece, Australia and Brazil to build up its own integrated power strategy.

It will also benefit from Total Eren’s footprint and ability to develop projects in other countries such as India, Argentina, Kazakhstan and Uzbekistan, it added.

“With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as [...] its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” TotalEnergies’ chief executive officer Patrick Pouyanne said.

Turkish target

The Total Eren announcement follows another deal, announced by TotalEnergies on Monday, pursuing renewable energy initiatives in Turkey.

The French supermajor signed a joint venture agreement with Turkey’s leading building contractor Ronesans Group to bankroll the latter's renewable energy ventures.

Joint venture Ronesans Enerji, which will be 50% owned by TotalEnergies, currently operates a portfolio of 166 megawatts of hydropower assets and has a pipeline of more than 700 MW of wind, solar photovoltaic and battery storage.

The Ronesans group's energy unit is aiming to achieve 2 GW of renewable energy capacity by 2028, it said.

In its statement on the agreement, TotalEnergies said the joint venture aims to expand into Turkey’s “liberalised growing electricity market”.