Waaree-Enel Green Power deal nears collapse amid disputes over unmet conditions
' deal to acquire
Enel Green Power India
is on the verge of collapse, after the two sides started bickering over unfulfilled conditions that were incorporated in the agreement announced in January, people aware of the development said.
They are discussing the terms of a breakup and the talks are not amicable, as per the people.
Solar panel maker
Waaree Energies
, listed on the stock market in October last year and has a market capitalisation of Rs 85,000 crore, had offered Rs 792 crore in cash to acquire 100% of Enel Green Power India from Enel Green Power Development SRL. Including the renewable power producer's debt that Waaree Energies agreed to absorb, the enterprise value of the deal was nearly Rs 3,500 crore, as per the people.
Enel declined to comment. Waaree Energies did not respond to ET's queries.
Rome-headquartered Enel, the world's largest private operator in renewables in terms of installed capacity, decided to exit the India business last year and had engaged HSBC as an adviser for the sale, as per the people.
The company which was once owned by the Italian state and was privatised in the 1990s has made a commitment to deleverage and rationalise its operations. As part of this effort, it has embarked on an asset disposal programme that included the India business.
Enel Green Power India operates a renewable energy platform with a net capacity of about 640 megawatts, consisting of solar and wind projects, including majority-owned projects with a partner. It has a project pipeline of around 2.5 gigawatts in India.
Waaree is India's largest manufacturer of solar photovoltaic modules with an installed capacity of 13.3 gigawatts. In its January 11 deal announcement, Waaree stated that the acquisition would help diversify its revenue streams, enhance execution capabilities for wind projects and expedite growth of its independent power producer business.
Enel's plans to exit the India business mirror those of some other European players. Norway's Statkraft, which is Europe's largest renewable energy company, has also put its India business on the block. Finland's Fortum recently sold its Indian assets to Hexa Climate. Madrid-based Zelestra is also looking for a buyer for its India renewable energy generation business.
Mergers and acquisitions activity in the sector in India remains strong with large Indian energy developers and global private equity firms demonstrating appetite to make investments here and purchase assets that are on sale.
A recent EY report stated that the renewable energy sector in India had attracted over $4 billion in foreign direct investment in calendar year 2024. India's installed capacity of renewable energy generation is 220 gigawatts, accounting for 45% of the country's total energy mix.
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