TOTAL Buys G2mobility, Expands Vehicle Charging Businesses

TOTAL S.A.TOT announced that it has entered into an agreement to acquire G2mobility, a French leading provider of electric vehicle charging solutions. The deal will expand the company's footprint in electric vehicle charging businesses, ranging from designing smart charging stations to optimizing energy usage management and selling integrated services.

New Energies for Mobility

Rapid urbanization and development of infrastructure are resulting in massive growth in the usage of vehicles across the globe. This is evident from the data provided by Statista that shows that in 2015, nearly 72.61 million cars were sold globally and 81.5 million vehicles are expected to be sold on a global basis in 2018.

A report from The Center for Biological Diversity shows that globally, about 15% of man-made carbon dioxide comes from cars, trucks, airplanes, ships and other vehicles. Increasing number of vehicles plying the road contributes to rising pollution. Hence, the usage of natural gas fueled and electric-powered vehicles are on the rise to curb pollution levels.

TOTAL, in order to expand its operation in natural gas-driven vehicle business, acquired Dutch company PitPoint B.V. in 2017 and 25% stake in Clean Energy Fuels Corp. CLNE this year.

TOTAL's Role in New Energies

Apart from developing and producing fossil fuels across the globe, TOTAL is also trying to supplement the same with the development of new clean energies like solar power and biomass. In 2011, the company acquired a majority stake in SunPower Corporation SPWR to provide solar solutions worldwide.

The company started producing biofuels in 1990. Notably, its La Mède refinery in France will process 500,000 metric tons of biodiesel a year.

TOTAL's ambition is to combine different energy sources and supply affordable energy to customers. Globally, we can notice an increase in clean energy usage. TOTAL's focus to develop alternate energy sources will help it evolve as a major energy company.

Zacks Rank and A Key Pick

TOTAL currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Premier Oil PLC PMOIY , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Earnings estimates of Premier Oil have moved up 47.6% to 31 cents in the past 30 days.

Shares of both Premier Oil and TOTAL have outperformed the broader industry's growth in a year's time.

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Clean Energy Fuels Corp. (CLNE): Free Stock Analysis Report

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SunPower Corporation (SPWR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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