France’s Total to buy 20% stake in Adani Green Energy
20% minority interest in Adani Green Energy (AGEL) are being acquired by France’s Total SE. Furthermore, Total is also planning to acquire operative solar assets’ half of ownership, cumulatively for $2.5 billion. According to the deal struck, Total will take up 50% stake in 2.35 GW portfolio of operating solar assets that are owned by AGEL and 20% stake in AGEL for $2.5 billion.
In a statement released by AGEL, it said that the investment is major strategic alliance step between Total and Adani group that will spread across various sectors and companies under the group. It will cover liquified natural gas terminals, gas utility business and renewable assets pan India.
Adani Group said, “This is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and help India in its quest for development of renewable energy.”
Back in 2018, Adani and Total started up the partnership in energy sector with Total investing in Adani’s business of city gas distribution, which is associated with LNG terminal business and gas marketing business.
Gautam Adani, Chairman of Adani Group said, “We are delighted to deepen our strategic alliance with Total, a global energy major, and welcome it as a significant shareholder in AGEL.”
The French Oil and Energy group Total said in a statement that the deal “marks the deepening partnership between the Adani Group – India’s leading infrastructure platform – and Total, in the transition and green energy fields in India.”
Total is planning to have 35 gigawatts (GW) of gross renewable energy generation capacity by 2025, from current 7 GW. It then plans to add 10 GW per year moving forward. AGEL is also eyeing 25 GW of renewable capacity by 2025.
“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties,” said Total CEO and chairman Patrick Pouyanne.