Shell to put German solar battery maker Sonnen on the block - report

British oil giant Shell Plc (LON:SHEL) intends to put German residential solar battery maker Sonnen GmbH up for sale in a potential deal which could value the business at between EUR 1.35 billion (USD 1.45bn) and EUR 1.8 billion, German paper Handelsblatt reported on Friday.

Interested parties could bid for either 51% or the entire company, the paper said, citing sources familiar with the matter.

The projected valuation is three to four times higher than Sonnen’s expected revenue of EUR 450 million for 2023.

Shell acquired the company for EUR 500 million in 2019. Following the takeover, the German firm has expanded its internationalisation and increased its revenue to EUR 350 million in 2022 from EUR 133 million in 2020.

While its growth strategy has not yet resulted in a profit, Sonnen could still benefit from the positive market development. According to estimates cited by Handelsblatt, the market segment in which the company operates could generate combined revenue of up to EUR 24 billion by 2030, more than doubling its value of EUR 11 billion in 2022.

Sonnen said in May it has doubled its production capacity in response to the substantial increase in demand for residential solar storage systems.

(EUR 1 = USD 1.071)

Choose your newsletter by Renewables Now. Join for free!