Petronas nears $1.6 bn stake deal in India's AM Green

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Petronas nears $1.6 bn stake deal in India's AM Green

Petronas nears $1.6 bn stake deal in India's AM Green

Industry News
Oct 04,23

The negotiations between Petronas and AM Green are at an advanced stage, valuing AM Green at $6 billion

Petronas nears $1.6 bn stake deal in India's AM Green

Petronas, the state-owned oil giant of Malaysia, is on the verge of finalising a deal worth $1.6 billion for a 25% stake in the ammonia unit of India's AM Green.

The negotiations between Petronas and AM Green are at an advanced stage, valuing AM Green at $6 billion, according to the report. However, the report also cautioned that despite the progress, the discussions might face delays or even fall through.

Earlier this year, there were reports of a competition between Petronas and global competitor BP to invest between $1.5-2 billion for a substantial minority stake in AM Green, which is a new platform owned entirely by Greenko's founders, Anil Chalamalasetty and Mahesh Kolli.

Greenko was expected to choose between the offers from these two energy giants. This development aligns with the current trend of global investors showing keen interest in India's rapidly growing green sector, essential for the country to meet its climate change targets. Notably, French oil giant Total recently revealed plans to invest $300 million in a joint venture with Adani Green Energy for solar and wind projects.

Furthermore, Saudi Arabia's sovereign wealth fund is exploring the possibility of opening an office in India, reflecting the kingdom's interest in investing in sectors like green energy and petrochemicals within the Indian market.

It's worth mentioning that Petronas had previously proposed a $460 million investment for a 20% stake in the green energy division of India's largest power producer, NTPC. However, NTPC decided against proceeding with the deal.

Source: ET Energyworld