New Delhi: In a bid to expand its dominance into green energy, Reliance Industries Ltd (RIL) has acquired two companies including a Norwegian solar panel maker and a domestic company that is into building renewable projects.
Mukesh Ambani led Reliance Industries acquired solar panel manufacturer REC Solar Holdings AS in a deal giving the company an enterprise value of $771 million, the company said as per a Bloomberg report.
Back home, it went on to buy 40 percent of Pallonji Mistry’s Sterling & Wilson Solar Ltd., valued at $372 million.
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What are the two acquisitions aimed at?
Reliance New Energy Solar Ltd (RNESL) has taken over REC Solar Holdings AS from China National Bluestar Group with an aim to help RNESL expand in green energy markets globally, including the US, Europe, Australia, and elsewhere in Asia.
The company’s push in the renewable sector is in line with Prime Minister Narendra Modi’s goal of helping India more than quadruple renewable power capacity to 450 gigawatts by the end of this decade.
According to the Bloomberg, Reliance derives nearly 60 percent of its annual revenue from its oil-related business. Saudi Aramco is also in discussions for the purchase of a roughly 20 percent stake in Reliance’s refining and chemicals business.
REC makes solar-grade polysilicon and solar panels and modules at facilities in Norway and Singapore, and has more than 1,300 employees globally, according to the statement.
Reliance will use REC’s technology to manufacture metallic silicon and solar panels at its gigafactory at Jamnagar in Gujarat. The factory’s annual capacity will expand to 10 gigawatts from 4 gigawatts.
Sterling & Wilson has a presence in 24 countries and has installed 11 gigawatts of solar power projects. In the first part of the deal, RNESL will acquire a 15.46 percent stake in Sterling & Wilson Solar at Rs 375 per share, or roughly Rs 1,100 crore, according to the Money Control report.
Meanwhile, Reliance Industries (RIL) share price touched a 52-week high of Rs 2,724.70 adding 2 percent in the early trade on Monday after the company announced the acquisition of REC Solar Holdings.
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