Reliance Industries is close to acquiring Europe’s largest solar panel manufacturer, REC Group. The Mukesh Ambani-helmed company is likely to acquire the company for $1-1.2 billion from China National Chemical Corp (ChemChina). RIL that has big plans for green energy will be able to access top-notch technology and global manufacturing capabilities through the deal.
RIL is also in talks with global lenders to raise $500-600 million in acquisition financing for the transaction, stated a report in The Economic Times. The rest will be funded through equity.
REC produces silicon material for photovoltaic (PV) applications and multi-crystalline wafers. It also makes solar cells and modules. Due diligence for the deal is almost complete and talks are on to close the transaction. The report stated that a formal announcement is likely in the next few weeks. RIL has been exploring talks with various independent power producer assets but nothing has followed through.
REC has an annual volume of 1.5 GW. It has made over 40 million solar panels, with generation of 11 GW of power for customers. IKEA, Audi, Tiger Beer are some of its customers. With manufacturing in Scandinavia and Singapore, it is one of the largest vendors globally. The company started off in India a little over a decade ago as a supplier to power utilities such as Greenko, and scaled projects for the Department of Atomic Energy and Eenadu Group.
Meanwhile, Mukesh Ambani announced Reliance’s green energy plans and the setting up of the 5,000-acre Dhirubhai Ambani Green Energy Giga Complex in Jamnagar during the company’s 44th annual general meeting in June. RIL will invest $10 billion in four giga factories. It had recently announced investments of $144 million along with strategic investors Paulson & Co, Bill Gates, and others in energy storage company Ambri Inc.
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