A $1.6 billion transaction for a minority investment in India’s AM Green business is almost complete, according to a report,

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Petroliam Nasional Bhd., the state-owned oil company of Malaysia, is close to agreeing on a deal to pay roughly $1.6 billion for a minority investment in AM Green’s ammonia division. According to a Bloomberg story, Petronas is in early negotiations to purchase approximately a 25% share in the business, which might fetch $6 billion in a transaction.

According to sources cited in the news, the firms are completing the specifics and an announcement might be made as soon as in the next few days. Even if conversations are well along, they might still be postponed or even fail.

According to its annual report, Petronas has approximately 50,000 people working in more than 100 countries as of the end of 2022. From 50.9 billion ringgit in 2021 to 101.6 billion ringgit ($21.7 billion) in 2018, the company’s earnings after tax more than quadrupled. According to Bloomberg, India, where Petronas exports crude oil, condensates, and petroleum products, contributed 2% of the Malaysian state-owned company’s overall income in 2017.

While waiting for the goal of being carbon-neutral by 2070, India has set its eyes on reducing its reliance on coal and oil. Both domestic and foreign investors have been making investments in the nation’s green energy sector.

An equal joint venture (JV) to construct solar, wind, and energy storage projects in India totaling 5 gigawatts (GW) was launched earlier this year by ReNew Energy Global Plc and Gentari Sdn Bhd, a division of Malaysia’s Petroliam Nasional Bhd (Petronas).

According to Bloomberg, the sovereign wealth fund of Saudi Arabia is considering setting up shop in India since the country is eager to make investments in petrochemicals and green energy in the South Asian country.

TotalEnergies SE, a major player in the French oil industry, said earlier this week that it will fund a $300 million joint venture with Adani Green Energy Ltd. According to the article, the new JV business would house a 1,050-megawatt portfolio of solar and wind projects.

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