Daniel Kretinsky to Become Major Shareholder in TotalEnergies Following Landmark Deal

Billionaire Daniel Kretinsky, owner of Royal Mail, is set to become the fourth largest shareholder in French oil giant TotalEnergies after a transaction valued at €5.1 billion (£4.5 billion). The Czech businessman will acquire 4.1 percent of TotalEnergies shares following an agreement to sell half of his Eastern European power business EPH to the French energy company in return for equity.

The structure underpinning this deal involves the creation of a new joint venture, which will assume control of selected EPH gas and biomass-fired power plants, along with battery developments located across Britain, Ireland, Italy, France and the Netherlands. This arrangement is designed to support TotalEnergies’ ambitions in Europe’s profitable electricity markets amidst rising power demand, partly driven by the global surge in data centre operations.

TotalEnergies aims to enhance its network for supplying and profiting from liquefied natural gas imported from the United States by integrating these power plants, thereby strengthening its position within the European energy sector. EPH will retain complete ownership of its commodities and transmission infrastructure businesses, as well as its Slovakian power generation company and central European assets not included in the deal.

Kretinsky’s move comes at a time when the oil and gas sector is tempering its previous commitments to net zero goals. As such, this transaction vindicates his contrarian strategy of investing in substantial fossil fuel assets across Europe. Patrick Pouyanné, Chief Executive of TotalEnergies, described the acquisition as a significant step in the strategy to create a leading integrated electricity player in the continent.

Kretinsky, whose fortune approaches £8 billion, is recognised in the United Kingdom as the first foreign owner of the 509-year-old Royal Mail. He also holds a 27 percent stake in West Ham United, and 10 percent in Sainsbury’s. His career began as a legal professional at Slovakian investment group J&T, from which he later expanded his business interests primarily through EPH.

Outside the United Kingdom, Kretinsky maintains a 40 percent stake in Sparta Prague football club and holds half of the Czech News Center, publisher of the tabloid newspaper Blesk. This latest venture reflects his ongoing efforts to diversify investments and reduce geographic risk, which has historically been concentrated within the EU and UK.