French energy company Total (Paris; www.total.com) is to acquire battery producer Saft (Bagnolet / France; www.saftbatteries.com). Both companies have signed an agreement for Total to offer EUR 36.50 per Saft share, valuing the company at EUR 950m. The price, offered on 9 May, is a 38% premium over Saft’s closing share price of EUR 26.40 on 6 May.

Saft’s supervisory board has unanimously approved the move by Total. Ghislain Lescuyer, Saft’s CEO, said: “I am convinced that Total will provide Saft with the required expertise and resources needed for its future development.”

The battery company said it has a long-standing presence in Europe and the US and continues to grow in Russia, Asia and South America. With more than 4,100 employees, it had sales of EUR 759m in 2015.

Saft has 14 production sites worldwide, which make rechargeable and non-rechargeable batteries using nickel-based, primary lithium, lithium-ion and silver-based technologies. The business is split into four market segments: stationary back-up power, transportation, civil electronics and space & defence.

Chairman and CEO of Total Patrick Pouyanné said the acquisition was part of its ambition to accelerate development in renewable energy and electricity. Total made its first foray into renewable energy in 2011 with the USD 1.4 bn acquisition of SunPower, one of the largest solar firms in the US. Pouyanné added that Saft would also complement Total’s portfolio with electricity storage solutions, which were a key component of future growth in renewable energy.

The offer is subject to review by the AMF, France’s Financial Markets Authority.