Mukesh Ambani is set to acquire Europe’s largest solar panel manufacturer from China’s hands

Mukesh Ambani led Reliance Industries Limited (RIL) is said to be closing in on acquiring Europe’s largest solar panel manufacturer, REC Group, for $1.2-1.5 billion from China National Chemical Corp (ChemChina), as reported by Economic Times. RIL is taking one more step towards sustainable and green energy and will be able to access top-notch technology and global manufacturing capabilities through the deal.

The REC Group is registered in Singapore and their headquarter is in Norway. They are a leader in the production of solar cells, silicon material for photovoltaic (PV) applications and multi-crystalline wafers, and modules for rooftop installations, industrial and solar parks. The company has been present in India for a little over a decade. It had started out in India as a supplier of power utilities such as Greenko and scaled projects for the Department of Atomic Energy and Eenadu Group, among others.

Reliance is already in talks with global banks to secure $500-600 million for financing the acquisition. Besides, a portion of the funds required for the acquisition will be raised via equity, the ET report further stated. Due diligence for the deal is almost final and talks are ongoing to close the transaction. The report stated that a formal announcement is likely to be made 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, and Tiger Beer are some of its customers. With manufacturing in Scandinavia and Singapore, it is one of the largest vendors globally.

Mukesh Ambani has also 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.

The development comes months after Reliance Industries announced a massive Rs 75,000 crore worth of investments in green energy over the next three years. Reports also state that Reliance Industries may also buy Deutsche Telekom arm for $5.9 billion

Read More: Mukesh Ambani’s Reliance Industries Ltd. can buy Netherlands’ telecom Giant

“Now, in 2021, we are launching our new energy business with the aim of bridging the green energy divide in India and globally,” RIL chairman Mukesh Ambani had talked regarding it during the annual general meeting in June.

He further added that the company will establish and enable at least 100GW of solar energy by 2030 and that a significant part of this will come from rooftop solar and decentralized solar installations in villages. RIL project goals aims at a positive impact towards economic, environmental, and social aspects based on sustainability and clean energy keeping in mind the prospects of the future generation.