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Reliance eyes acquisition of Europe's REC Group for $1.2 bn

2021-09-02

Reliance Industries Limited will acquire Europe's largest solar manufacturer, Renewable Energy Corporation (REC) Group, for about Rs $1 to $1.2 billion from China National Chemical Corporation (ChemChina).

The company has big goals for green energy to access the best technologies and global manufacturing capacities.

According to a report, RIL also speaks to global lenders to increase $500 to $600 million in finance acquisition for the transaction. The remaining amount will be financed through equity.

The company produces silicon-based materials for photovoltaic (PV) applications, multi-crystalline wafers, solar cells and modules. The acquisition deal is almost complete, and the transactions are discussed, though a few announcements are likely to be made.

REC Group has a yearly volume of 1.5 GW. The company has manufactured more than 40 million solar panels, generating 11 GW of power for the consumers. Some of its renowned customers are IKEA, Tiger Beer, Audi. The parent company is based in Scandinavia and Singapore, though it is one of the largest renewable manufacturers worldwide. In India, the company started as a small supplier of power utilities like Greenko a decade ago and scaled projects for the Department of Atomic Energy and Eenadu Group.

In June, while addressing the 44th annual general meeting, Mukesh Ambai announced that RIL has green plans to set up 5,000 acres of Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. The company will invest $10 billion in setting up four Giga factories. He also announced the investment of $144 million, along with Bill Gates, Paulson & Co, and Ambric Inc, an energy storage firm.

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Also read: India adds 2,488 MW solar capacity in Q2, rising 19% QoQ over Q1