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
Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.
OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.
The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.