Total in Exclusive Talks with UGI to Sell Totalgaz

France-based Total confirmed its intentions to sell Totalgaz to US-based UGI Corporation, after it had given a mandate to two banks to conduct operations back in March.

‘Total today announced that it has entered into exclusive negotiations with UGI Corporation, the parent company of Antargaz, after having received a firm offer from the U.S. company to acquire all outstanding shares of Totalgaz, the Group’s liquefied petroleum gas (LPG) distributor in France,’ reads a note released on Wednesday. 

As happened with Alstom, the protection of jobs and employee benefits is a possible bone of contention. The company employs around 750 people in France.

“Total closely examined not only UGI's ability and commitment to support Totalgaz’s growth, but also the pledges made with regard to the workforce,” commented Philippe Boisseau, member of Total’s Executive Committee and President of Marketing & Services.

According to the Total’s statement, the planned sale is conditional to an information and consultation procedure involving the representative organisations of the employees concerned.  

Total is trying to capitalise its non-core businesses, while pushing on value-creating projects to counterbalance rising costs. Earlier this year, the company reported lower profits and increased net investments.