Shell on Friday agreed to acquire India-based renewable power platform Sprng Energy for $1.55 billion.
Shell Overseas Investment B.V., a wholly owned subsidiary of Shell Plc., said it has signed an agreement with U.K.-based investor Actis to acquire 100% of Solenergi Power Private Ltd.for $1.55 billion and with it, the Sprng Energy group of companies.
Sprng Energy supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 2.9 gigawatts-peak (GWp) of assets with a further 7.5 GWp of renewable energy projects in the pipeline.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, director of Shell’s Integrated Gas, Renewables and Energy Solutions.
“I believe it will enable Shell to become a leader across the power value chain in a rapidly growing market where electrification on a massive scale and strong demand for renewables are driving the energy transition,” he said.
“Sprng Energy generates cash, has an excellent team, strong and proven development track record and a healthy growth pipeline. Sprng Energy’s strengths can combine with Shell India’s thriving customer-facing gas and downstream businesses to create even more opportunities for growth,” he added.
The transaction is expected to close later in 2022.
Sprng Energy will retain its existing brand and operate as a wholly owned subsidiary of Shell within Shell’s Renewables and Energy Solutions Integrated Power business. It is headquartered in Pune, India.
