Adani Green Slumps as Total Halts Investment Amid US Probe – Yahoo Finance
Adani Green Energy took a hit as TotalEnergies SE announced a pause in investments in the Adani Group following US bribery allegations against founder Gautam Adani and others. This decision raises concerns about the Adani Group’s financial future and impacts TotalEnergies’ growth plans in India.
TotalEnergies had established partnerships with Adani entities in renewables and natural gas in recent years. After a report by Hindenburg Research and subsequent US federal prosecutors’ allegations of over $250 million in bribes to Indian officials for solar energy contracts, Adani Group denied the claims. Despite this, Adani Green Energy’s stock dropped by 11% in Mumbai trading, while TotalEnergies saw a 0.4% decrease in Paris.
TotalEnergies clarified that they will hold off on new investments in Adani companies until the accusations and their fallout are resolved. Previously, TotalEnergies had acquired a minority stake in Adani Green in January 2021 and owned 19.75% of the company. They also had invested in joint ventures with Adani Green in 2020, 2023, and 2024. However, plans for $5 billion in green hydrogen projects with another Adani entity were put on hold after the Hindenburg report.
TotalEnergies emphasized that their investments in Adani entities complied with the law and internal governance processes. They were unaware of any ongoing investigation related to the alleged corruption scheme. The French energy company now faces the need to reassess its expansion plans in India, a key market for its growth strategy in Asia.
With significant renewable projects in operation and under construction in India, TotalEnergies looks to navigate this challenging situation to protect its interests as a minority shareholder of Adani Green and a joint-venture partner in renewable projects. The company is committed to upholding transparency and legality in its business dealings in order to safeguard its reputation and investments.
