Shell on Friday agreed to acquire India-based renewable energy platform Sprng Energy for $1.55 billion.
Shell Overseas Investment BV, a wholly owned subsidiary of Shell Plc., announced that it has signed an agreement with UK-based investor Actis to acquire 100% of Solenergi Power Private Ltd. for $1.55 billion to acquire the Sprng Energy group of companies.
Sprng Energy supplies solar and wind energy to power distribution companies in India. The portfolio consists of assets with a capacity of 2.9 gigawatt peak (GWp) and an additional 7.5 GWp of renewable energy projects in the pipeline.
“This transaction positions Shell as one of the pioneers 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 energy value chain in a fast-growing market where large-scale electrification and strong demand for renewable energy are driving the energy transition,” he said.
“Sprng Energy is cash generative, has an excellent team, a strong and proven development track record and a healthy growth pipeline. Sprng Energy’s strengths can be combined with Shell India’s thriving customer-facing gas and downstream businesses to create even more growth opportunities,” 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.