Mukesh Ambani's Reliance Industries Ltd. acquired a Norwegian solar panel maker and an Indian builder of renewable projects in a bid by the oil-to-retail conglomerate to extend its dominance into alternative energy.
Reliance, the company controlled by Asia's richest person, acquired solar panel manufacturer REC Solar Holdings AS in a deal giving the company an enterprise value of $771 million, it said in a filing on Sunday. Hours later Reliance said it had agreed to acquire 40% of billionaire Pallonji Mistry's Sterling & Wilson Solar Ltd., valued at $372 million as of Friday's close in Mumbai.
The two acquisitions -- REC Solar was purchased from China National Bluestar Group Co. -- will help Reliance New Energy Solar expand in green energy markets globally, including the U.S., Europe, Australia and elsewhere in Asia. Mr Ambani's push aligns with Prime Minister Narendra Modi goal of helping India, the world's third-biggest emitter of greenhouse gases, more than quadruple renewable power capacity to 450 gigawatts by the end of this decade.
Mr Ambani pledged in June to spend $10 billion on alternative energy over three years. The new investments are meant to pivot the conglomerate to cleaner fuels. Reliance gets nearly 60% of its annual revenue from its oil-related business. Saudi Aramco is also in discussions for the purchase of a roughly 20% stake in Reliance's refining and chemicals business.
REC makes solar grade polysilicon and solar panels and modules at facilities in Norway and Singapore, and has more than 1,300 employees globally, according to the statement. Reliance will use REC's technology to manufacture metallic silicon and solar panels at its gigafactory at Jamnagar in Gujarat. The factory's annual capacity will expand to 10 gigawatts from 4 gigawatts.
Sterling & Wilson has presence in 24 countries and has installed 11 gigawatt of solar power projects, Reliance said in a separate statement.
"It is in line with our strategy of investing in new and advanced technologies and operating capabilities aimed at achieving Reliance's goal of enabling 100 GW clean and green energy before the end of this decade," Mr Ambani said in the statement.
Gautam Adani Attends Anant Ambani-Radhika Merchant Wedding In Mumbai Gautam Adani, Mukesh Ambani, SRK, Rajinikanth, Akshay Kumar At PM's Oath Event Here's How Merger With Disney Puts Reliance Way Ahead Of Its Streaming Rivals Bangladesh Imposes Curfew, Deploys Military As 105 Die In Protests "Jindal Group Executive Showed Porn, Groped Me On Flight": Woman To NDTV "Atmanirbharta" Cannot Be At Cost Of Nation's Defence: Air Force Vice Chief Conspiracy Theories Take Off After Global IT Crash UP Train Services Resume At Gonda Accident Site "Good Conversation": S Jaishankar Holds Phone Talks With Ukrainian Counterpart Track Latest News Live on NDTV.com and get news updates from India and around the world.