BP P.L.C. (NYSE: BP) has agreed to fully acquire Lightsource bp, a solar and battery storage entity. The acquisition places the value of the 50.03% stake it does not already own at £254 million.
This move for complete ownership aligns with Lightsource bp's trajectory towards sustained growth and enhanced performance.
Since BP's initial investment in 2017, Lightsource bp has grown from operations in three countries to 19, developing a 61GW project pipeline, and increasing its workforce to over 1,200.
Utilizing a capital-efficient business model, Lightsource bp has thrived by developing, engineering, and constructing projects, then divesting majority stakes. This strategy has consistently produced impressive mid-teens returns.
Integrating Lightsource bp fully into BP's portfolio is expected to significantly advance the shift towards low-carbon power solutions and meet its ambitious renewable energy goals, marking a pivotal step in energy transition strategy.
The acquisition is expected to close by mid-2024, and Lightsource bp is set to maintain its independent branding and operational structure. Joaquin Oliveira, from BP, is slated to become the Co-CEO of Lightsource bp in early 2024.
Price Action: BP shares are trading higher by 0.47% at $36.24 on Thursday.