Reliance Subsidiary REC Solar Holdings to Sell REC Solar Norway for $22 Million

The transaction is expected to be completed by April 2024


REC Solar Holdings, a 100% step-down subsidiary of Reliance Industries, has entered into a share purchase agreement with Norway-based Elkem to sell a 100% equity stake in REC Solar Norway for an aggregate cash consideration of ₹22 million.

REC Norway is in the business of manufacturing kerf-based polysilicon in Norway. Elkem is a silicon-based material provider listed on the Oslo Stock Exchange.

This transaction will give Elkem control of industrial areas and facilities in Norway, including areas next to Elkem’s activities at Fiskaa in Kristiansand. Elkem plans to leverage these areas to pursue new and support existing opportunities rather than re-starting REC Solar Norway’s previous business model.

“Through this agreement, Elkem secures control of industrial areas and facilities in Kristiansand and at Herøya. This will give us the opportunity to gain local synergies and further develop the Fiskaa site. The transaction will also provide access to attractive facilities for testing and optimization of products and green production processes near our research center in Kristiansand,” said Håvard Moe, Elkem’s senior vice president for Technology.

RIL will continue to retain the technology and intellectual property rights pertaining to kerf-based polysilicon.

The transaction is subject to certain regulatory and other customary closing conditions and is expected to be completed by April 2024. Upon completion of the sale, REC Norway will cease to be a subsidiary of REC Solar Holdings.

REC Solar Holdings and its other subsidiaries, engaged in the business of manufacturing and sale of Heterojunction technology (HJT) solar cells and modules, will continue to be Reliance’s subsidiaries.

Reliance New Energy Solar acquired REC Solar Holdings from China National Bluestar Group for $771 million in October 2021.

Reliance New Energy also acquired a 20% stake for $12 million in California-headquartered Caelux Corporation, a company developing perovskite-based solar technology to enhance module efficiency.

You can also check the top five funding deals in the solar sector in India during 2023, according to Mercom’s Q3 2023 India Solar Market Update.


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