Total To Purchase 60% Of Sunpower (SPWRA), Creating Solar Powerhouse

Big news in the solar world this evening.  France based Total and Sunpower (SPWRA) will merge to create an international solar powerhouse.  Total has launched a friendly tender offer for up to 60% of Sunpower at a price that represents a nearly 50% premium to the current price.  Both boards have approved the deal and Sunpower management will remain in place.  Total will provide Sunpower with up to $1 billion in credit over the next five years.

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Sunpower CEO Tom Werner commented on the deal:

"Total’s commitment and global presence will help accelerate our growth and solidify our position in the increasingly competitive solar sector," said Tom Werner, SunPower’s CEO. "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. Our relationship with Total will improve our capital structure enabling SunPower to accelerate our power plant and commercial development businesses, and expand our manufacturing capacity with lower cash requirements."

Surprisingly, shares of Sunpower (SPWRA) aren’t up that much (under 2%) in after hours trading considering the premium that Total is paying. 

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