Total Buy 60% Of Sunpower For US$1.38bn

French oil giant Total has completed the acquisition of a 60% stake in US solar panel designer and manufacturer SunPower in a US$1.3bn deal. CFW notes that Total's decision reflects a broader trend in the industry; major oil and gas companies have recently entered the renewable sector with a view to both diversifying their activities - especially as gas prices remain fairly low and governments have pledged to step up their renewables targets - and improve their environmental credentials. We also stress that the deal provides a financial lifeline for SunPower. The company retains a significant share of the US solar market; however, substantial technological improvements are needed to compete with fast-growing Chinese competitors.

To read the full article, please choose one of the following options: