Mukesh Ambani-led Reliance Industries is planning to acquire the REC Group, the largest solar panel manufacturer in Europe, from state-run China National Chemical Corp (ChemChina). The acquisition is expected to cost $1-1.2 billion, said an Economic Times report.

The REC Group, which is registered in Singapore and headquartered in Norway, is a leader in the production of solar cells, silicon material for photovoltaic (PV) applications and multi-crystalline wafers, and modules for rooftop installations, industrial and solar parks.

Reliance is already in talks with global banks to secure $500-600 million for financing the acquisition. Besides, a portion of the funds required for the acquisition will be raised via equity, adds the ET report.

The development comes months after Reliance Industries announced a massive Rs 75,000 crore worth of investments in green energy over the next three years.

"Now, in 2021, we are launching our new energy business with the aim of bridging the green energy divide in India and globally," RIL chairman Mukesh Ambani had said at the annual general meeting in June.

He added that the company will establish and enable at least 100GW of solar energy by 2030 and that a significant part of this will come from rooftop solar and decentralised solar installations in villages.

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Significantly, the acquisition of the REC Group is likely to reduce the solar industry’s growing dependence on China, which has become a concern globally. Other Indian companies such as Renew Power and the Adani Group are also looking to diversify supply sources and incentivise local manufacturing for their major manufacturing projects.

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