13 Jun Tata Power acquires Welspun Renewables for $1.38bn
India’s Tata Power (NSE:TATAPOWER) has agreed to buy renewable-energy company Welspun Renewables Energy in a deal worth US$1.38 billion aiming to increase its clean energy portfolio to 2.3GW.
Tata Power’s renewable energy unit Tata Power Renewable Energy Ltd (TPREL) signed the agreement to buy Welspun in “the largest transaction in the renewables space in India.”
Welspun Renewables, part of the Welspun Group, has around 1,140MW of solar and wind power assets across 10 Indian states. The firm has 990MW in solar projects and around 150MW in wind projects.
When the transaction is finished, TPREL will own 2,300MW, “making it the largest renewable power firm” in India.
TPREL currently operates 294MW of renewable power capacity and around 400MW worth of solar and wind projects that are expected to be completed soon.
The company’s goal is to double its total generation capacity across thermal, renewable and hydropower to 18GW by 2022.
“The company is pursuing growth in [the] renewable-energy space to create value for its shareholders through various organic and inorganic growth opportunities,” said Anil Sardana, Tata Power’s chief executive. “The acquisition is also a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40 per cent of its total generating capacity.”
Welspun said the transaction is expected to be completed by September.