Mukesh Ambani-led Reliance Industries is planning to buy Europe’s largest solar panel maker REC Group from state-run China National Chemical Corp (ChemChina). A report in the Economic Times said the acquisition is expected to cost $1-1.2 billion.
REC Group, registered in Singapore and headquartered in Norway, is a leader in the production of solar cells, silicon materials and multi-crystalline wafers for photovoltaic (PV) applications, and modules for rooftop installations, industrial and solar parks.
Reliance is already in talks with global banks to secure $500-600 million to finance the acquisition. In addition, a part of the funds required for the acquisition will be raised through equity, says ET’s report.
The growth comes months after Reliance Industries announced a massive Rs 75,000 crore investment in green energy over the next three years.
“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 said at the annual general meeting in June.
He added that the company will install and enable at least 100GW of solar power by 2030 and a significant portion of this will come from rooftop solar and decentralized solar installations in villages.
The acquisition of REC Group is expected to reduce the growing dependence of the solar industry on China, which has become a matter of global concern. Other Indian companies such as Renew Power and Adani Group are also trying to diversify supply sources and encourage local manufacturing for their major manufacturing projects.
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