French oil major Total is to buy Direct Energie in a deal worth €1.4 billion (£1.2bn).
It has entered into an agreement to acquire 74.33% stake in the latter firm, making it a major competitor for power utility EDF.
Total’s 1.5 million client portfolio will be combined with Direct Energie’s 2.6 million clients and help towards establishing its position as a “leading alternative supplier” of gas and electricity.
It aims to have more than six million French customers and one million Belgian customers by 2022.
Patrick Pouyanné, Chairman and CEO of Total said: “Through this transaction, Total is actively pursuing its development in electricity and gas generation and distribution in France and Belgium. This friendly takeover is part of the Group’s strategy to expand along the entire gas-electricity value chain and to develop low carbon energies, in line with our ambition to become the responsible energy major.”
Another oil and gas giant Shell recently completed the buyout of UK energy supplier First Utility.