RIL buys REC Solar at $771 mn valuation
Mukesh Ambani-controlled Reliance New Energy Solar, a wholly owned subsidiary of Reliance Industries (RIL), has acquired REC Solar Holdings (REC Group) from China National Bluestar (Group) Co. An RIL statement said the transaction is for an enterprise value of $771 million. This is the first major renewable energy deal, where an equipment manufacturing facility has been acquired. In other recent deals, such as the ones between Adani and SB Energy Corp., or the Orix-greenko and Gpsc-avaada share acquisitions, renewable energy projects or companies that have installed power generation capacity were involved. Another significant deal for the renewable energy sector was the merger of Renew Power with RMG II, a blankcheck company, but that was for the purpose of Renew's Nasdaq listing and did not lead to any capacity addition.
Another significant deal for the renewable energy sector was the merger of Renew Power with RMG II, a blank-check company, but that was for the purpose of Renew's Nasdaq listing and did not lead to any capacity addition. The RIL-REC deal is in line with what Ambani had said at his company’s 44th annual general meeting. Commenting on the new energy and new materials business, he had said, “As a company always focused on growing businesses of the future, RIL will provide leadership on the combined strength of its balance sheet, talent, technology (tech), and proven project-execution capabilities. RIL will make its new energy business truly global.” While REC Group is based out of Norway, it is controlled by the Chinese government-owned China National Chemical Corporation (Chemchina) that holds 79.5 per cent stake in China National Bluestar (Group) Co.
Bluestar had acquired REC Solar in 2014 for $640 million.