French multinational energy corporation, TotalEnergies SE, is reportedly conducting negotiations to expand its investment in renewable energy projects led by Adani Green Energy.

What Happened: TotalEnergies is contemplating acquiring stakes in several of Adani Green’s projects, Bloomberg reported, citing sources. This aligns with TotalEnergies’ strategic objective of augmenting its clean energy assets. The potential investment could amount to a whopping $700 million.

However, the talks are currently confidential and a deal is not set in stone.

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Should this deal materialize, it would augment Total’s presence in India’s burgeoning energy sector while providing Adani Green with additional resources to spearhead new renewable energy projects. Total already owns a 19.75% stake in Adani Green, making it the company’s second-largest shareholder.

Earlier in July, it was reported that Adani Green had plans to raise ₹12,300 crore by selling shares to institutional investors to fund its expansion.

Why It Matters: TotalEnergies’ potential investment in Adani Green underscores the French energy giant’s commitment to expanding its renewable energy portfolio. This move is in line with TotalEnergies’ goal to become a net-zero emissions company by 2050.

For Adani Green, additional funds from TotalEnergies could significantly boost its capacity to undertake new renewable energy projects, thus solidifying its position in India’s rapidly evolving renewables sector.

Price Action: Adani Green’s share price was up 2.05% at ₹1,003.95 in morning trade on Friday.

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