Mukesh Ambani's Big Push Into Green Energy With Two Acquisitions

Reliance acquired solar panel manufacturer REC Solar Holdings AS in a deal giving the company an enterprise value of $771 million.

Mukesh Ambani's Reliance Industries Ltd. acquired a Norwegian solar panel maker and an Indian builder of renewable projects in a bid by the oil-to-retail conglomerate to extend its dominance into alternative energy.

Reliance, the company controlled by Asia's richest person, acquired solar panel manufacturer REC Solar Holdings AS in a deal giving the company an enterprise value of $771 million, it said in a filing on Sunday. Hours later Reliance said it had agreed to acquire 40% of billionaire Pallonji Mistry's Sterling & Wilson Solar Ltd., valued at $372 million as of Friday's close in Mumbai.

The two acquisitions -- REC Solar was purchased from China National Bluestar Group Co. -- will help Reliance New Energy Solar expand in green energy markets globally, including the U.S., Europe, Australia and elsewhere in Asia. Mr Ambani's push aligns with Prime Minister Narendra Modi goal of helping India, the world's third-biggest emitter of greenhouse gases, more than quadruple renewable power capacity to 450 gigawatts by the end of this decade.

Mr Ambani pledged in June to spend $10 billion on alternative energy over three years. The new investments are meant to pivot the conglomerate to cleaner fuels. Reliance gets nearly 60% of its annual revenue from its oil-related business. Saudi Aramco is also in discussions for the purchase of a roughly 20% stake in Reliance's refining and chemicals business.