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Aditya Birla Eyes Shell's Sprng Energy in Major Deal
31 Jan
Summary
- Aditya Birla Group joins NIIF, KKR, and Sembcorp in bidding.
- Sprng Energy sale could be the largest M&A deal this year.
- Shell is divesting Sprng Energy due to a strategy rethink.
Aditya Birla Group is among the final contenders vying for Shell's renewable energy platform, Sprng Energy. The group joins National Investment and Infrastructure Fund (NIIF), KKR, and Sembcorp in the bidding process, which is currently in the due diligence phase, expected to last six to eight weeks. This potential acquisition is poised to be the largest Mergers and Acquisitions deal in the renewable energy generation sector this year.
Shell has confirmed it is reviewing strategic options for Sprng Energy to unlock long-term value. The divestment follows a strategic rethink within the oil company, reportedly driven by shareholders urging a greater focus on its primary exploration and production activities. Shell had previously acquired Sprng Energy in 2022 for $1.55 billion from private equity firm Actis.
Sprng Energy, a wholly owned subsidiary of Shell Overseas Investment BV, manages a 5-gigawatt energy generation portfolio. This move signals a potential full exit from Sprng Energy for Shell, following earlier attempts at partial divestments last year. The Indian renewable energy sector continues to attract significant investment from various players.
