Aditya Birla Eyes Shell's $20B Green Energy Unit

Aditya Birla Group (ABG) is reportedly in advanced negotiations to acquire Shell Plc's Indian renewable energy subsidiary, Sprng Energy. Discussions are centered around a significant financial package, with State Bank of India and Axis Bank leading a potential ₹15,000 crore loan facility to support the transaction. This acquisition, if finalized, is poised to be the largest in India's renewable energy sector, potentially exceeding the value of previous landmark deals.

Shell has confirmed that it is engaged in preliminary discussions with potential partners for Sprng Energy, indicating an ongoing evaluation of its business portfolio. The sale is part of Shell's broader strategic realignment to focus on its primary exploration and production activities. Sprng Energy itself boasts a renewable energy generation capacity of 5 gigawatts, with its output contracted to state-owned entities, ensuring stable revenue streams.

The financial syndication for ABG's potential bid may expand to include other banks, with Japan's MUFG also participating in financing discussions. The loan facility is expected to be denominated in rupees, with tenors ranging from 5 to 10 years, though final terms are still under negotiation. Shell's headquarters in London will require approval for the sale, with an Asia Pacific team currently managing the negotiations, reportedly exclusively with ABG.