Sector News

Total to acquire battery maker Saft for $1.1 billion

May 10, 2016
Chemical Value Chain

Total said on Monday it has agreed to buy France based battery manufacturer Saft Groupe for 950 million euros ($1.1 billion), as it seeks to expand its renewable energies business and complement the acquisition in 2011 of a majority stake in U.S. solar power systems maker SunPower.

“The combination of Saft and Total will enable Saft to become the group’s spearhead in electricity storage,” Total Chief Executive Patrick Pouyanné said.

“The acquisition of Saft is part of Total’s ambition to accelerate its development in the fields of renewable energy and electricity,” he added.

Last month Total announced the creation of a gas, renewables and power division to help drive its ambition to become a top renewable power generation and trading company within 20 years.

Under the deal announced on Monday Total has filed an offer for Saft shares with French market regulator AMF of 36.50 euros a share, excluding a dividend of 0.85 euros, to value Saft’s equity at 950 million euros.

It said the offer price represents a 38.3 percent premium to Saft’s closing share price of 26.40 euros on May 6 and had the unanimous backing of Saft’s board.

Total paid $1.3 billion for a majority stake in California-based SunPower and has also invested in other renewable energy ventures including biofuels.

Pouyanne said last year that Total will spend at least half a billion dollars annually in its solar and biofuels businesses with the aim of increasing the share of clean energies in its portfolio to between 15 to 20 percent by 2035 from 3 percent currently.

Shares in Total were up 0.05 percent at 42.96 euros by 1251 GMT.

“The acquisition … will give Total a competitive advantage in the growing market for batteries and integrated solar power-battery storage systems, while also allowing it to hedge against a long-term risk of falling demand for petroleum-based fuels over the coming decades,” said Francesco Menonna, Power & Renewables analyst at BMI Research.

By Geert de Clercq and Bate Felix

Source: Reuters

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 17, 2021

Neste and Avfuel join forces for U.S. sustainable fuel supply 

Chemical Value Chain

Neste will provide Avfuel with SAF in volumes able to meet the growing demands of Avfuel’s customers, including fixed base operators (FBOs), airports, flight departments, original equipment manufacturers (OEMs) and commercial operators.

January 17, 2021

Borealis and Tomra start up advanced recycling plant in Germany 

Chemical Value Chain

Operation of the plant is a joint enterprise between Borealis, TOMRA and Zimmermann. Borealis is responsible for the plant’s commercial success and contributes its expertise and knowledge in innovation, recycling and compounding.

January 17, 2021

Johnson Matthey appoints Stephen Oxley as Chief Financial Officer

Chemical Value Chain

Johnson Matthey announces that Stephen Oxley will join the company’s board on 1st April 2021 as Chief Financial Officer (CFO).

Send this to a friend