Petronas nears $1.6 billion deal for India's AM Green unit stake

Malaysian energy giant Petronas is reportedly in advanced negotiations to acquire a significant stake in India's AM Green unit for a whopping $1.6 billion, according to sources familiar with the matter. This potential deal marks a strategic move for Petronas in its pursuit of expanding its footprint in the renewable energy sector and strengthening its presence in the Indian market.Petronas is in advanced talks to buy about a 25% stake in the unit, which may be valued at around $6 billion in a deal, the people said. The companies are finalizing the details and an announcement could be made as soon as in the coming days, said the people, who asked not to be identified as the information is private.
While discussions are advanced, they could still be delayed or fall apart, the people said. A representative for Petronas declined to comment, while a representative for Greenko Group, which shares the same founders with AM Green, didn’t immediately respond to a text message seeking comment.India has set its sights on slashing reliance on oil and coal as it chases the target of being net-zero carbon by 2070. The country’s green energy sector has been attracting investments from both local and foreign investors. Saudi Arabia’s sovereign wealth fund will consider opening an office in India as the kingdom is keen to invest in sectors including green energy and petrochemicals in the South Asian nation.
French oil giant TotalEnergies SE this week announced plans to invest $300 million in a joint venture with Adani Green Energy Ltd, according to sources. The new JV company will house a 1,050-megawatt portfolio consisting of solar and wind projects.Petronas had nearly 50,000 employees spanning over 100 countries as of the end of 2022, its annual report shows. Its profit after tax doubled to 101.6 billion ringgit ($21.7 billion) last year, from 50.9 billion ringgit in 2021. India, where Petronas sells crude oil and condensates and petroleum products, accounted for 2% of the Malaysian state-owned firm’s total revenue last year..The proposed acquisition of a stake in AM Green, a leading player in the Indian renewable energy market, signals Petronas' commitment to diversifying its energy portfolio and embracing sustainability. With the global transition towards cleaner and more environmentally friendly energy sources, this move aligns with Petronas' long-term goals of sustainability and growth.
AM Green is renowned for its extensive portfolio of renewable energy assets, including wind and solar power projects across various states in India. These assets have a combined capacity of several gigawatts, making AM Green a prominent player in the Indian renewable energy landscape. Petronas aims to leverage this partnership to strengthen its position in the fast-growing renewable energy market in India.. As the world shifts towards cleaner energy alternatives, this deal has the potential to be a game-changer in the Indian renewable energy sector, offering new opportunities for sustainable development and international collaboration.

(Ira Singh, Asstt Editor)