Total to buy battery maker Saft Group for $1.1b

Total to buy battery maker Saft Group for $1.1b

French oil giant Total SA (LSE:TTA) announced a deal to acquire French battery maker Saft Group SA for $1.1 billion in hopes to increase investments in clean energy.

The France-based oil producer has pledged to invest $500 million a year in renewables, aiming to meet the growing energy demand.

The deal will allow Total to increase its expansion in renewables which started with its 2011 purchase of solar-panel producer SunPower Corp.

According to Patrick Pouyanne, Total’s chairman and CEO, the firm will become Total’s “spearhead in electricity storage.”

Saft designs and creates nickel and lithium batteries for industries such as transportation, civil and military electronics.

“Saft’s renowned technological know-how and unique expertise have allowed it to develop innovative and competitive solutions for its clients,” added Pouyanne.

Total reported last month it was merging its business units for renewables, gas, power and energy efficiency in ‘a value chain approach to electricity.’