Reliance Looks to Acquire Europe’s Largest Solar Panel Manufacturer

REC Group, Europe’s largest solar panel maker, is on the verge of being acquired by Reliance Industries. China National Chemical Corp (ChemChina) is expected to sell the company to Mukesh Ambani’s company for US$ 1-1.2 billion. RIL, which has enormous intentions for green energy, will benefit from the purchase by gaining access to cutting-edge technologies and worldwide manufacturing capabilities.

According to a report in The Economic Times, RIL is in talks with global lenders to raise US$ 500-600 million in acquisition finance for the transaction. The remainder will be funded through equity.

REC manufactures multi-crystalline wafers and silicon material for photovoltaic (PV) applications. Solar cells and modules are also produced by the company. The deal’s due diligence is nearly complete, and negotiations to close the agreement are underway. According to the article, an official announcement is expected in the coming weeks. RIL has been in talks with a number of independent power producers, but nothing has come to fruition.

The annual volume of REC is 1.5 GW. It has produced more than 40 million solar panels, generating 11 GW of electricity for clients. Customers include IKEA, Audi, and Tiger Beer. It is one of the world’s largest sellers, with factories in Scandinavia and Singapore. The company began in India a little more than a decade ago as a supplier to power utilities like Greenko and has since scaled projects for the Department of Atomic Energy and the Eenadu Group.

During Reliance’s 44th annual general meeting in June, Mr. Mukesh Ambani unveiled the company’s green energy plans, including the construction of the 5,000-acre Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. RIL is planning a US$ 10 billion investment in four gigafactories. It recently announced a US$ 144 million investment in energy storage business Ambri Inc. with strategic investors Paulson & Co, Bill Gates, and others.