A unit of Reliance Industries Ltd. acquired solar panel manufacturer REC Solar Holdings AS in a deal giving the company an enterprise value of $771 million as the Indian oil-to-retail conglomerate seeks to extend its dominance into alternative energy.
The purchase of Norway-based REC Solar from China National Bluestar Group Co. will help Reliance New Energy Solar expand in green energy markets globally, including the US, Europe, Australia and elsewhere in Asia, according to a statement from the parent company on Sunday.
Reliance Industries Chairman Mukesh Ambani pledged in June to spend $10 billion on green energy over three years, putting him squarely in competition with Gautam Adani’s Adani Group, which is planning to invest $20 billion over 10 years for renewable energy businesses.
REC makes solar grade polysilicon and solar panels and modules at facilities in Norway and Singapore, and has more than 1,300 employees globally, the statement shows.
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.
Reliance will strongly support REC’s planned expansion in Singapore, France and the US.
“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.