By Jessica Sier

Total SA will acquire EDP-Energias de Portugal SA's solar energy portfolio of 2.5 million customers and two power plants for an enterprise value of 515 million euros ($556.9 million), the company said Monday.

The French energy company said the portfolio includes business-to-consumer customers and two gas-fired combined cycle power plants, worth nearly 850 megawatts of electricity generation.

The transaction is part of Total's plan to achieve carbon neutrality by 2050, the company said.

Following the acquisition, Total will capture 12% of the Spanish residential gas market and 6% of Spain's residential power market, the company said.

The deal will make Total the fourth largest supplier of gas and power in Spain.

Energias de Portugal said it will continue to invest in Spanish renewables, electricity networks and energy supply.

The deal is due for completion before the end of 2020.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

May 18, 2020 03:05 ET (07:05 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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