Reliance Acquires Norway-based REC Group For $771 Million

Reliance Industries Limited (RIL) on Sunday acquired Norwegian-headquartered solar module maker REC Solar Holdings (REC Group) for an enterprise value of $771 million (around Rs 5,800 crore) from China National Bluestar. REC Group is a leading international solar energy company for pioneering innovations. It is known for its high-efficiency, long-life solar cells and panels for clean and affordable solar power.

“Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of RIL, has acquired REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an enterprise value of $771 million,” RIL said in a statement. Speaking about the acquisition, RIL chairman and managing director Mukesh Ambani said, “I am immensely pleased with our acquisition of REC because it will help Reliance tap the unlimited and year-long power of Soorya Dev, the Sun God, that India is fortunate to be blessed with.”

RIL said that REC has more than 1,300 employees globally and they will become proud members of the Reliance Family after the successful completion of the transaction and become an integral part of the team that is driving one of the world’s most ambitious mission to drive green energy transition.

In the company’s annual general meeting earlier this year, Reliance Industries chairman had announced the company’s mega plan to invest Rs 75,000 crore in the next three years to set up four renewable energy gigafactories in Jamnagar, Gujarat. As a part of the plan, the oil-to-telecom-to-retail conglomerate has already started developing Dhirubhai Ambani Green Energy Giga Complex over 5,000 acres in Jamnagar. “It will be amongst the largest integrated renewable energy manufacturing facilities in the world…,” Ambani had said while revealing RIL’s green energy plan.

The complex will cover entire spectrum of renewable energy with four gigafactories —— an integrated solar photovoltaic module factory, an advanced energy storage battery factory, an electrolyser factory for the production of green hydrogen and a fuel-cell factory. Talking about why green hydrogen is important for the planet, Mukesh Ambani had, at the International Climate Summit 2021, said, “Green Hydrogen is zero-carbon energy. It is the best and cleanest source of energy, which can play a fundamental role in the world’s decarbonisation plans.”

Norway’s REC Group has an annual solar panel production capacity of 1.8 gigawatts (GW). Incorporated in 1996, REC Group is one of the biggest player in the market. It has installed around 10GW capacity globally till now. The Norway company has regional hubs in North America, Europe and Asia-Pacific. By 2030, Reliance Industries plans to develop capacity to generate at least 100 gigawatts of electricity from renewable sources, which can be converted into carbon-free green hydrogen, Mukesh Ambani had earlier said.

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