Why Don’t More Oil Companies Buy Solar Companies?

Feb 13, 2014
J. Webster
Comments Off on Why Don’t More Oil Companies Buy Solar Companies?

A few years back, French oil company Total (TOT) bought 65% of SunPower (SPWR), why doesn’t Total now try to buy all of SunPower? Moreover, why aren’t more oil companies buying up solar companies? For Total, with a market capitalization of over $136 billion, SunPower, with a market cap of around $5 billion, is pocket change. I wonder how much it would cost to buy 100% of Sunpower?

You’d have to say the trend, now more than ever, is swaying towards alternative sources of energy. Who wants to live in a city like Beijing and Shanghai that are being called “Unlivable”. Plus, you see someone like Warren Buffet buying up solar power plants, that’s surely a sign that solar is here to stay and a long term solution for carbon pollution and oil spill disasters. And then there’s Apple, who are demanding that their new factory in Arizona be run entirely on solar power.

Here’s the chart of SunPower, will its stock continue to rise and reach $100 a share again or will oil companies step in and take over before then? Yeah, and I bet Total wishes they stepped in and bought more SunPower shares or all of it when it was around $5 a share.

SPWR Chart

SPWR data by YCharts

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