Total Group To Buy 20% Stake In Adani Green
Total Group to buy 20% stake in Adani Green, the deal for about Rs 18,250 crore. Total Group, a French giant in the oil and energy sector, has entered into an agreement to buy a 20 percent stake in Adani Group’s company Adani Green Energy Limited (AGEL).
The group will buy the stake for $ 2.5 billion (about Rs 18,250 crore). In a joint statement, the two companies said the deal would allow Paris-based Total to acquire a stake in the world’s largest solar energy developer company, as well as a 50 percent stake in the current solar assets of 2.35 GW.
Total bought a 37.4 percent stake in Adani Group Ltd, the city gas distribution company of Adani Group, in the year 2018.
Total also took a 50 percent stake in Adani Group’s Odisha-based Dhamra LNG project. In a statement, Total said that buying a 20 percent stake in Adani Green Energy Limited signifies a deep partnership between the two companies.
According to the statement, Total Group wants to reduce its dependence on the oil business and is moving towards electricity and renewable energy. It aims to expand the existing capacity of seven GW of renewable energy generation to 35 GW by 2025.
AGEL aims to create 25 GW of renewable energy generation capacity by the year 2025.
At present, AGEL has a total of 14.6 GW of projects. Of these, three gigawatts of operational and under-construction capacity and 8.6 gigawatts are in the initial stage.
Gautam Adani, chairman of Adani Group, said that last year the group had indicated to reduce promoter’s stake in AGEL.
At the same time, according to Total CEO and Chairman Patrick Poyen, the company is entering India’s renewable energy business through AGL. Given the size of the Indian market in the region, the company is sure that this is the right place for it.
