The transactions are contingent on regulatory clearances and are timing-dependent on authorities’ approvals.

The announcements were issued in a TotalEnergies press release aligned with its European renewable-energy strategy.

TotalEnergies announced two European deals to reshape its renewables strategy: acquiring all of Shell’s terrestrial renewable energy activities in Europe while selling a 50% stake in a developed renewables portfolio to KKR.

The combined portfolio includes a pipeline of solar, wind, and battery storage projects in Italy, the UK, and Spain.

TotalEnergies will provide more details as the situation develops.

Regulatory approvals are required, and the deals are expected to close by the end of 2026.

The KKR sale is intended to validate TotalEnergies’ Integrated Power model and aims for a 12% ROACE by 2030.

The announcements come on the heels of TotalEnergies’ July earnings report, which showed profits doubling driven by higher hydrocarbon prices.

Financial terms of both the Shell acquisition and the KKR sale were not disclosed.

Stéphane Michel of TotalEnergies framed the moves as strategic capital-allocation optimization within the renewables push.

Shell, under CEO Wael Sawan, is prioritizing higher-value oil/gas and trading, de-emphasizing some renewables to recycle capital toward differentiated capabilities like asset-backed power trading.

TotalEnergies’ moves reflect different strategic paths: Shell shrinking renewables versus TotalEnergies expanding ownership and monetizing part of its portfolio.