formally announced the outright acquisition of Norwegian solar manufacturing company REC Solar for an enterprise value of $771 million, it said in a statement on Sunday.
ET had reported about the developments of the transaction in its August 31 edition.
Reliance, who made the deal through its wholly owned subsidiary Reliance New Energy Solar, will use REC’s advanced technologies and patents to build a 4 gigawatt (GW) manufacturing facility in Jamnagar, Gujarat as part of its ‘giga factories’. This unit will eventually be scaled up to 10 GW.
The company plans four ‘giga factories’ — an integrated solar PV plant, advanced energy storage battery manufacturing unit, green hydrogen, and fuel cell facility.
“[The deal] 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,” Ambani said in a statement.
The billionaire also signalled RIL’s intentions to continue making more acquisitions in the renewables sector.
“We will continue to invest, build and collaborate with global players to achieve the highest reliability, efficiency and economies to deliver high- quality, reliable power at affordable prices to our customers both in India and markets worldwide,” he added.
REC was owned by the China National Bluestar (Group) Co Ltd.
Earlier this year in June during the company’s 44th annual general meeting (AGM), chairman and managing director Mukesh Ambani had said that Reliance will invest $10 billion dollars in sustainable energy, a pivot from the traditional oil and chemicals business that relies on fossil fuels.
According to industry estimates, before the pandemic, REC reached almost 10% market share in the rooftop commercial and industrial segment.
REC, a 25-year old company, has patented over 600 utilities that produce high-efficiency solar panels. The company has two manufacturing units in Norway that produces polysilicon, and an additional facility in Singapore that assembles cells and modules.
Reliance said it would support REC’s expansion plans that include upscaling the Singapore factory to 2-3 GW, and constructing two new units — 2 GW cell and module unit in France, and a 1 GW module plant in the US.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
