l'Actualité du Solaire

The oil company Total has signed an agreement to acquire 74% of Direct Energie, the third largest electricity distributor in France which owns Quadran's solar assets. The acquisition price is advanced

is 42 € per share.

According to Total, this would bring together Total's 1.5 million customers and Direct Energie's 2.6 million customers. The combined entity would have a total renewable energy production capacity of 2.25 GW, of which 1.35 GW would come from Direct Energie.

PV Magazine of 18 April

Editor's note Since the stock market price is above €42 per share, someone is buying Direct Energie shares to thwart this deal (any shareholder would be better off selling on the market rather than to Total!). This as yet undisclosed company will offer a stock market bid over the €42. Indeed, the target is too important on the market to go into the bosom of Total, which would become too dangerous a competitor for EDF or Engie. It is therefore necessary that Direct Energie escapes from Total's grasp, and that the latter be obliged to conquer customers by itself. Total, which has considerable financial means, is ready to outbid because Direct Energie is a particularly strategic prey for its future. It cannot let it escape...

For the time being, the initiator of the Direct Energie share purchases is difficult to determine. It could be Engie who needs to strengthen his position in the direct distribution of electricity, whereas his strong point is gas. It could be a third party wishing to participate in the recomposition of the energy sector in France, with a strategic position, that of the very loyal retail customers...

The buyer will unmask itself within a few weeks, by making a counter-offer. The only certainty is that Total will not buy Direct Energie at €42 per share. There will be an overbid. A stock market battle will liven up the market over the next few months because Total has an interest in acquiring Direct Energie and could well pay for this asset, much, much more!