Total agrees to buy SunPower for $1.38b in renewable-energy push

FE Team | Published: May 01, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

SAN FRANCISCO, Apr 30 (Bloomberg): Total SA (FP), Europe's third-biggest oil producer, agreed to buy as much as 60 per cent of SunPower Corporation (SPWRA) for $1.38 billion, taking advantage of increased global interest in renewable energy. SunPower, the second-largest US solar panel maker, described the acquisition price of $23.25 a share as a "friendly tender offer" in a statement yesterday after the close of regular trading. SunPower surged $6.08, or 38 percent, to $22.20 at 9:32am on the Nasdaq Stock Market. The deal for San Jose, California-based SunPower may lead to more solar industry acquisitions as US and European suppliers seek help competing against rival suppliers in Asia, said Kevin Landis, portfolio manager at Sivest Group Inc. "This is exactly what SunPower needed to compete with the Chinese manufacturers that are getting so much support from their government," Landis said in an interview. "It also allows SunPower to double down on the technology improvements they'll need to compete in the long run." Sivest, also based in San Jose, held about 17,000 shares of SunPower at the start of the year. The stock has gained 72 per cent this year.