BENGALURU, July 13 (Reuters) - Grasim Industries' renewables unit will buy Sprng Energy from British oil major Shell in a deal worth $1.8 billion, including debt, in one of India's largest clean energy acquisitions, the companies said on Monday.
The acquisition will add 5 gigawatts in capacity to Aditya Birla Renewables' portfolio, Grasim, the flagship company of India's Aditya Birla Group, said.
The deal takes the group's renewables portfolio to 9.3 GW, making it one of the largest players in the country's growing clean energy sector.
India has stepped up its clean energy push to meet rising power demand, targeting 500 GW of non-fossil fuel capacity by 2030 from about 283 GW now, drawing significant investment from domestic conglomerates and global energy companies.
The country's clean energy space is currently dominated by Adani Group's clean energy unit Adani Green, and ReNew Energy Global.
The final equity consideration will be determined after adjustments for debt and cash, Grasim said.
The deal will be financed through a mix of debt, equity infusion from Grasim, and funds managed by Global Infrastructure Partners, a unit of BlackRock, it said.
The transaction is expected to complete by the end of 2026, Shell said on Monday.
The move reflects a wider industry shift, with global energy companies including BP and Equinor dialing back renewable energy investments in favour of their traditional oil and gas operations.
Under CEO Wael Sawan, Shell has also shifted its focus back to liquefied natural gas trading and upstream operations, while shrinking the company's low-carbon projects.
Reuters reported in February that Shell was reviewing strategic options for Sprng Energy. Shell had agreed to buy Sprng in 2022 for $1.55 billion.
Reporting by Nishit Navin and Sethuraman NR, additional reporting by Stephanie Kelly; Editing by Leroy Leo
Source: Reuters