Reliance Nears Deal to Acquire Solar Panel Maker REC For $1.2 Billion From ChemChina – EQ Mag Pro
Mukesh Ambani-controlled Reliance Industries (RIL) is in discussion with global banks to raise about $500-600 million in acquisition financing for the deal, while the rest will be funded via equity.
New Delhi : Billionaire Mukesh Ambani-controlled Reliance Industries (RIL) is poised to acquire Norwegian solar module maker REC Group for $1-1.2 billion from China National Chemical Corp (ChemChina) as part of the oil-to-telecom conglomerate’s Rs 75,000 crore push into clean energy.
Talks are underway with global banks to raise about $500-600 million in acquisition financing for the deal, while the rest will be funded via equity. Further, the acquisition will open doors for Reliance to access cutting-edge technology and global manufacturing capabilities as it continues to move forward on its plan to expand into the solar energy sector, according to a report in ET.
Founded in 1996, REC Group is an international “member” of state-run chemicals major ChemChina, which is the largest shareholder in Pirelli Tyres and Syngenta. REC Group—the leading European brand for solar photovoltaic (PV) panels—has an annual solar panel production capacity of 1.8 gigawatts (GW) and has installed around 10GW capacity globally.
It is important to note that India is all set to develop 175GW of renewable capacity, including 100GW of solar, by 2022. At present, the solar equipment market is dominated by Beijing-based companies such as Trina Solar Ltd, ET Solar, and Jinko Solar among others. India has a manufacturing capacity of only 3GW for solar cells and 15GW for solar modules.
Source : timesnownews
