Total acquires AGEL assets for US$2.5 billion
Abstract
On Jan 19th, it was reported that the French oil and gas giant Total will spend US$2.5 billion to acquire shares in the Indian renewable energy company Adani Green Energy Co., Ltd. (AGEL) and a series of solar asset portfolios, marking the company’s efforts to reduce its dependence on oil.
On Jan 19th, it was reported that the French oil and gas giant Total will spend US$2.5 billion to acquire shares in the Indian renewable energy company Adani Green Energy Co., Ltd. (AGEL) and a series of solar asset portfolios, marking the company’s efforts to reduce its dependence on oil.
The French company said that through the investment, Total will obtain a 20% stake in AGEL and a board seat, as well as a 50% stake in the Indian company’s solar asset portfolio.
AGEL is controlled by the Adani Group of India and has a market value of approximately 1.483 trillion Indian rupees (20.25 billion US dollars).
Total has begun to implement a strategy to switch to electricity and renewable energy. Its goal is to increase the total power generation capacity of renewable energy from the current 9 GW to 35 GW by 2025.
Increased investor pressure has prompted major European energy companies to introduce plans to curb emissions and increase renewable energy production.
Last week, Total became the first major global energy company to withdraw from the American Petroleum Institute, a major U.S. oil and gas lobby, citing disagreements over the lobby’s climate policy and support for loosening drilling regulations.
Regarding the acquisition of Total, Chief Executive Officer Patrick Pouyanne said: "Our entry into AGEL is an important milestone in our two companies' strategies for renewable energy business in India. Given the size of the market, India is the right place to implement our energy transition strategy based on the two pillars of renewable energy and natural gas."
