Politicians and pundits of all stripes may argue the truth of looming peak oil and the need for a renewable energy revolution if the global economy is to survive the inevitable demise of fossil-fuels as viable sources of energy; but we need only turn to the financial market to read the writing on wall.
A case in point is French oil and gas giant, Total Group’s majority takeover US solar panel manufacturer SunPower Corp. Total has bought in for 60 percent of the company’s holdings for an estimate $1.4 billion.
Total purchased 60 percent of SunPower’s Class A and B shares for a 46-49 percent premium price of $23.25/share.
One of the top-two suppliers of high efficiency solar panels and solar energy systems in America, SunPower’s equity is valued at $2.3 billion. Total says that the friendly takeover will help shape the future of the solar industry.
“The world future energy balance will be the result of a long-term transition in which renewable energies will take their place alongside conventional resources,” said Philippe Boisseau , President, Total Gas and Power Division. “Over the past years, Total has built up sizeable renewable energy activities. Today, Total is executing on its strategy to become a major integrated player in solar energy.
By providing SunPower with around $1 billion in credit over the next five years, SunPower CEO, Tom Werner says Total’s commitment will ensure a bright future for the company in an increasingly competitive global solar energy market.
“With Total’s $1 billion credit support agreement, solar research and development investments and the other resources available through its global network, we have taken the next step in positioning our business for continued growth and long-term success,” Werner said. “Total and SunPower will collaborate to ensure that solar becomes a platform for an efficient, competitive and sustainable energy future.”