By Sarah Kent 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 19, 2018).

Total SA on Wednesday said it would pay EUR1.4 billion ($1.73 billion) for a majority stake in electricity provider Direct Energie, the latest step in the company's strategy to become a power player.

The French oil giant is among the most aggressive in a small coterie of big oil-and-gas companies that are snapping up traditional utilities and renewable-energy firms.

The moves represent a strategic shift among big oil players, grappling with how to manage the potential for a long-term shift away from fossil fuels and the more immediate pressure of finding a market for growing supplies of natural gas.

Total has set an ambition to supply 7 million customers with electricity across France and Belgium by 2022 and is aiming to own 10 gigawatts of installed capacity from gas-fired and renewable power plants within five years.

Others eyeing a similar strategy include Royal Dutch Shell PLC, which has also embarked on a flurry of acquisitions in recent months.

The Direct Energie deal will bring Total 2.6 million new electricity customers in France and Belgium and nearly 1.4 GW of installed capacity from gas-fired power plants and renewables.

The deal is "in line with our ambition to become the responsible energy major," Total Chief Executive Patrick Pouyanne said in a statement.

Under the agreement, Total plans to initially buy just over 74% of Direct Energie's shares at EUR42 apiece. The company then plans to launch a tender offer for the rest of Paris-listed Direct Energie's shares.

The acquisition has been approved by Direct Energie's board, but remains subject to further shareholder and regulatory approvals.

Write to Sarah Kent at sarah.kent@wsj.com

(END) Dow Jones Newswires

April 19, 2018 02:47 ET (06:47 GMT)