The acquisition will help the Indian giant expand in green energy markets globally, including the US, Europe, Australia and elsewhere in Asia.
Billionaire Mukesh Ambani's Reliance Industries Ltd on Sunday announced the acquisition of Norway-based solar panel manufacturer REC Solar Holdings for $771 million as the oil-to-retail conglomerate made its first move towards creating a multi-billion-dollar clean energy portfolio to become net carbon zero by 2035.
Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of RIL, acquired "100% shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd for an enterprise value of $771 million," the firm said in a statement.
The acquisition will help the Indian giant expand in green energy markets globally, including the US, Europe, Australia and elsewhere in Asia.
REC makes solar grade polysilicon and solar panel and modules at facilities in Norway and Singapore, and has more than 1,300 employees globally, the statement said.
Reliance said it will use REC's technology to manufacture metallic silicon and solar panels at its gigafactory at Jamnagar in Gujarat, with an initial annual capacity of 4 gigawatts, eventually rising to 10GW.
Ambani had at the RIL annual general meeting announced spending of Rs 60,000 crore on creating clean energy manufacturing capacity and Rs 15,000 crore on the value chain and technology.
The purchase of the Norwegian solar panel maker is part of the $2 billion Ambani had earmarked for acquisitions to create clean energy capabilities.
"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," Ambani said in the statement.
Having committed to net-zero carbon by 2035, India's largest company by market value plans to build solar photovoltaic panels, batteries, hydrogen fuel cells, and electrolysers over the next three years.
(With inputs from PTI)