Oil Giant Total to buy 60% of SunPower for $1.38 Billion
Total SA, Europe's third-biggest oil producer, agreed to buy as much as 60 percent of SunPower Corp. for $1.38 billion, taking advantage of increased global interest in renewable energy. SunPower, the second-largest U.S. solar panel maker, described the acquisition price of $23.25 a share as a "friendly tender offer" in a statement. SunPower surged 40 percent to $22.53 yesterday after the close of regular trading on the Nasdaq Stock Market. The deal for San Jose, California-based SunPower may lead to more solar industry acquisitions as U.S. 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 takeover may trigger similar acquisitions by oil companies that consider renewable-energy manufacturers a way to improve their clean-energy credentials and may profit when surging crude prices reduce demand for fossil fuels, said John Hardy, an analyst at Gleacher & Co. in New York.
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