RIL’s Renewable Energy Division Buys REC Solar Holdings in $ 771 Million Deal

Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of Ltd (RIL), has announced the acquisition of 100% of the shares of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an enterprise value of $ 771 million.

A press release issued by the Reliance group said Norway-based REC has its operational headquarters in Singapore and regional centers in North America, Europe, Australia and Asia-Pacific. REC Group is an internationally pioneering solar energy company that leads the industry through its technological innovations and superior, high-efficiency, long-lasting solar cells and panels for clean and affordable cleaning. The 25-year-old company has three manufacturing facilities: two in Norway to make solar-grade polysilicon and one in Singapore to make photovoltaic cells and modules.

REC’s range of Alpha and Alpha Pure solar modules are recognized as industry leaders in efficiency, reliability and guaranteed long life. The heterojunction technology (HJT) used by REC helps its modules outperform other technologies commonly used in the industry.

REC has more than 600 utility and design patents, of which 446 are granted and the rest are under evaluation. It always had a strong focus on research and development and now, coupled with Reliance’s world-class innovation, scale and operational excellence, it will further accelerate technological advancements and new product introductions.

REC is a trusted brand worldwide known for its pioneering innovations. REC was the first to introduce Passivated Emitter and Half-Cut Back Cell (PERC) technology, which is adopted by all major manufacturers today, while REC has moved on to its next-generation HJT technology. REC’s operation in Norway is distinguished by its low carbon footprint in polysilicon manufacturing.

REC has more than 1,300 employees around the world. They will become proud members of the Reliance family upon successful completion of the transaction and become an integral part of the team that is driving one of the world’s most ambitious missions to drive the transition to green energy.

The statement added that Reliance will strongly support REC’s planned expansions, including the 2-3 GW cell and module capacity in Singapore, the new 2 GW cell and module unit in France and another 1 GW module plant in the United States. USA

In India, Reliance plans to use this industry-leading technology in its fully integrated silicon metallic to photovoltaic panel gig factory at the Dhirubhai Ambani Green Energy Giga Complex, Jamnagar initially with a capacity of 4 GW per year and eventually growing to 10 GW per year. Reliance’s deep experience in scale, project execution and operational excellence, coupled with REC technology, will facilitate the establishment of a state-of-the-art, fully integrated photovoltaic manufacturing facility at Dhirubhai Ambani Green Energy Giga Complex and subsequently , will replicate such complexes around the world. . The REC acquisition will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including the US, Europe, Australia and other parts of Asia.

The press release quoted Mukesh Ambani, President of Limited, as he puts it: “… (the acquisition) will help Reliance harness the unlimited, year-long power of Soorya Dev, the God of the Sun, with whom India is fortunate to be blessed. It is in line with our strategy of investing in new and advanced technologies and operational capabilities aimed at achieving Reliance’s goal of enabling 100 Gw of clean and green energy before the end of this decade. This will be the largest single company contribution to the Honorable Prime Minister Shri Narendra Modi’s goal of India producing 450 Gw of renewable energy by 2030. It will enable India to become a world leader in the green energy transition to overcome the climate crisis “.

Goldman Sachs is acting as sole financial advisor and Davis Polk & Wardwell LLP is acting as legal advisor to Reliance in this transaction.

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