Home Energy company Shell nears $1.8 billion deal to buy Indian renewable energy company

Shell nears $1.8 billion deal to buy Indian renewable energy company

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Shell is set to acquire a renewable energy company in India

Sprng Energy Pvt is set to strike a deal with Shell to acquire the Indian renewable energy producer for about $1.8 billion including debt, people familiar with the matter said.

A deal between Sprng’s private equity owner Actis and the energy giant could be signed in two to three weeks after Shell beat rival bidders, the sources said, asking not to be identified because information is private.

No final decision has been made and the talks could still break down, the people said. A Shell representative declined to comment while Actis representatives did not immediately respond to requests for comment.

Shell was among the bidders for Sprng, alongside Adani Group and renewable energy company Greenko, Bloomberg News reported in March.

Sprng Energy is a renewable energy platform set up by Actis with a $450 million commitment from one of the company’s funds, according to its website. It has about 2,503 peak megawatts of solar projects and about 498 MW of wind projects in operation or under development, the website says.

Turning to renewables after more than a century of pumping oil, Shell is aiming to achieve net zero emissions by 2050. That’s not progressing fast enough for some campaigners, and the company plans to put its report on step on transmitting energy to a non-binding vote at its annual meeting of shareholders scheduled for May 24.

Shares of Shell in Amsterdam fell 5.6% on Monday, their biggest drop since November, giving the company a market value of nearly $200 billion.

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