French oil major Total follows Shell’s move into household energy

Total has followed Shell by deepening its exposure to the household energy sector with a €1.4bn (£1.2bn) deal to buy a utility. Total said it plans to buy a three-quarter stake in Direct Energie at a 30pc premium to the energy supplier’s market price at last close in a friendly deal, before making a tender offer for the rest of the company at the same price of €42 a share. The deal would help establish its position as a leading alternative supplier of natural gas and electricity, according to Total, by adding Direct Energie’s 2.6 million clients to its existing 1.5 million customer base. The oil group’s growing interest in the power market follows Shell’s decision to enter electricity supply because it offers “the biggest growth in the energy market”.