FRANKFURT (Reuters) – French oil group Whole TOTF.PA is launching the sale of its resins enterprise because it streamlines actions to liberate money to spend money on renewable power, folks near the matter mentioned.
The corporate is working with Credit score Suisse CSGN.S as its adviser for the sale of operations that includes the Cray Valley model, they mentioned, including the unit could possibly be valued at 500-600 million euros ($588-705 million), together with debt, in a deal.
Whole is predicted to ship out info packages on the unit within the coming weeks to potential consumers, primarily personal fairness corporations, the folks mentioned.
Whole and Credit score Suisse declined to remark.
Whole mentioned final week it was planning to hike annual investments in renewable power and electrical energy by 50% and reduce its reliance on oil, emulating European rivals in a bid to develop into a significant low-carbon energy producer.
Confronted with gloomy long-term prospects for oil demand, Whole has been accelerating a push into various sources of income, with a specific deal with offering electrical energy and increasing its renewable power enterprise.
Whole, on monitor for $1 billion in financial savings this 12 months, is focussing on value cuts at its operations moderately than layoffs.
Cray Valley makes speciality chemical components, hydrocarbon speciality chemical compounds, and liquid and powder tackifying resins used as elements in adhesives, rubbers, polymers, coatings, and different supplies.
The merchandise are used within the power, printing, packaging, building, tyre manufacturing and electronics industries.
($1 = 0.8506 euros)
Extra reporting by Benjamin Mallet; Modifying by Mark Potter