French energy group Total SA is launching the divestiture of its resins business as part of the company’s restructuring program to free up cash to invest in the renewable energy sector, Reuters reported, citing people close to the matter. Credit Suisse is acting as an adviser in the divestiture program, the sources said, noting that the unit could be valued between €500 million and €600 million ($588-705 million), including debt. According to the sources, Total will send information about the unit to potential buyers which are mostly equity firms.
Last week, the oil major said it would cut exposure to fossil fuels and ramp up investment in renewable energy and electricity by 50%. With an outlook of weak oil demand growth, Total is seeking to tap revenue from alternative sources. The company said it is on course to achieve $1 billion in savings in 2020. The company’s restructuring drive has been mostly focusing on cost-cutting measures rather than layoffs.
Total resins business, Cray Valley, produces specialty chemicals used as ingredients to make a variety of products, including polymers, coatings, adhesives, rubbers, and other materials.
