TotalEnergies SE, headquartered in France, is a global multi-energy company engaged in oil, natural gas, renewables, and electricity. With a strategic focus on transitioning to cleaner energy, TotalEnergies has been actively involved in mergers and acquisitions (M&A) to diversify its portfolio. As of April 2025, the company has completed 20 acquisitions, with an average deal value of $1.63 billion, marking 2024 as one of its most active years in M&A activities.
Historical M&A Activities
TotalEnergies’ M&A trajectory reflects its commitment to expanding its energy portfolio and transitioning towards sustainable energy sources. Below is a chronological list of notable acquisitions and divestitures up to 2023:
- 2017: Acquired a 23% stake in Eren RE, a renewable energy company, for €237.5 million.
- 2018: Purchased Direct Energie, a French electricity and gas supplier, for €1.4 billion.
- 2019: Acquired Anadarko’s African assets for $8.8 billion, marking its largest acquisition to date.
- 2020: Bought a 20% stake in Adani Green Energy Limited (AGEL) for $2.5 billion, expanding its renewable footprint in India.
- 2021: Acquired a 10% stake in Arctic LNG 2 project in Russia for an undisclosed amount.
- 2022: Purchased a 50% stake in Clearway Energy Group, a U.S. renewable energy company, for $1.6 billion.
- 2023: Fully acquired Total Eren, valuing the company at €3.8 billion, with a net investment of around €1.5 billion.
- 2023: Acquired three gas-fired power plants in Texas from TexGen for $635 million, adding 1.5 GW to its capacity.
- 2023: Purchased Quadra Energy, a German clean energy aggregator, for an undisclosed amount.
- 2023: Acquired a 50% stake in SapuraOMV, a Malaysian upstream gas operator, for $530 million.
Recent M&A Activities (2024–2025)
In line with its strategic shift towards renewable energy and sustainable practices, TotalEnergies has continued its M&A activities in 2024 and 2025:
- 2024: Acquired VSB Group, a German renewables developer, for $1.65 billion, enhancing its position in the European renewable market.
- 2024: Purchased SN Power, expanding its hydropower assets in Africa.
- 2024: Entered into agreements with RES to acquire wind and solar projects in Alberta, Canada, including the 184 MW Big Sky Solar project.
- 2025: Sold a 50% stake in Polska Grupa Biogazowa, a Polish biogas producer, to HitecVision for €190 million, aiming to accelerate biogas development in Poland.
- 2025: Reportedly nearing completion of a sponsorship merger with Ineos Grenadiers cycling team, potentially becoming a title sponsor.
Divestitures
TotalEnergies has also engaged in strategic divestitures to streamline its portfolio:
- 2023: Sold its upstream Canadian assets, including its participation in the Fort Hills oil sands project, to Suncor for C$1.47 billion (approximately $1.1 billion).
- 2023: Sold its 50% interest in the Surmont oil sands project in Canada to ConocoPhillips for C$1.47 billion.
- 2024: Sold 10% of its BioNorrois biogas unit to Crystal Union.
- 2025: Plans to sell the 440 MW Puutionsaari wind and solar project in Finland, developed by VSB, aligning with its strategic focus on key markets.
Analysis: Successes and Challenges
Successes:
- Strategic Alignment: TotalEnergies’ acquisitions have been aligned with its goal to become a multi-energy company, focusing on renewable energy and reducing carbon emissions.
- Geographical Diversification: The company has expanded its presence in key markets across Europe, North America, Africa, and Asia, mitigating regional risks.
- Portfolio Expansion: Acquisitions like VSB Group and SN Power have significantly increased TotalEnergies’ renewable energy capacity, moving closer to its target of 100 GW by 2030.
Challenges:
- Market Volatility: Fluctuating energy prices and regulatory changes can impact the profitability of acquired assets.
- Integration Risks: Integrating diverse companies across different regions and sectors poses operational challenges.
- Capital Allocation: Balancing investments between traditional oil and gas operations and renewable energy projects requires careful capital allocation to ensure sustainable growth.
Strategic Decisions and Reasoning
TotalEnergies’ M&A strategy reflects a deliberate shift towards sustainable energy solutions. By acquiring companies in the renewable sector, TotalEnergies aims to diversify its energy mix and reduce its carbon footprint. Divestitures of oil sands and other high-emission assets indicate a commitment to environmental responsibility and compliance with global climate goals. The company’s focus on geographical diversification ensures resilience against regional market fluctuations and regulatory environments.
Conclusion
TotalEnergies has demonstrated a proactive approach in reshaping its portfolio through strategic mergers, acquisitions, and divestitures. By investing in renewable energy and divesting from high-emission assets, the company is positioning itself as a leader in the global energy transition. While challenges remain, TotalEnergies’ strategic decisions underscore its commitment to sustainable growth and energy diversification.