Reliance Industries subsidiary buys REC Solar for $771M

Billionaire Mukesh Ambani's newly floated energy firm, Reliance New Energy Solar Ltd (RNESL), has made its first acquisition, buying REC Solar for $771 million, the company said on Sunday.

"Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has announced acquisition of 100 percent shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd, for an enterprise value of $771 million," it said in a statement.

REC is headquartered in Norway and has its operational headquarters in Singapore and regional hubs in North America, Europe, Australia, and Asia-Pacific.

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REC Group is an international pioneering solar energy company leading the industry through its technological innovations and superior, high efficiency, and long-life solar cells and panels for clean and affordable solar power.

The 25-year-old company has three manufacturing facilities, two in Norway for making solar-grade polysilicon, and one in Singapore making PV cells and modules.

"Reliance will strongly support REC's planned expansions including 2-3 GW cells and module capacity in Singapore, brand new 2 GW cells and module unit in France, and another 1 GW module plant in the US," it said.

In India, Reliance plans to use this industry-leading technology in their fully integrated, metallic Silicon to PV Panel manufacturing giga factory at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum.

Reliance's deep expertise of scale, project execution and operational excellence coupled with REC's technology will facilitate the establishment of a state-of-the-art next-generation fully-integrated PV manufacturing facility at Dhirubhai Ambani Green Energy Giga Complex, and subsequently, replicate such complexes around the world.

The acquisition of REC will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia.