Torrent Power in Talks to Acquire L&T Thermal Unit in $1 Billion Deal

Torrent Power is in talks to acquire L&T's thermal unit for $1 billion, including debt. Deliberations are ongoing, and talks could fall apart or other bidders might emerge. The disposal would help L&T reduce its debt, while Torrent Power would expand its power generation and distribution services.

Torrent Power Ltd. is reportedly in discussions to acquire Larsen & Toubro Ltd.'s (L&T) thermal business unit for approximately $1 billion, including debt. Both companies are working with advisers on the potential transaction, which is currently in its early stages [1].

The proposed acquisition would help L&T raise cash to reduce its debt, as it aims to focus on its core engineering and construction operations. Torrent Power, owned by Ahmedabad-based conglomerate Torrent Group, offers services including power generation, transmission, distribution, and manufacturing and supply of power cables [2].

Deliberations are ongoing, and the details of the potential transaction may change. There is also a possibility that talks could fall apart, and other potential bidders may emerge. A representative for L&T declined to comment, while Torrent Power didn’t immediately respond to a request seeking comment [1].

This acquisition, if successful, would expand Torrent Power's power generation and distribution services. Shares of Torrent Power have dropped around 9% in Mumbai this year, giving the company a market value of nearly $8 billion [2].

References:
[1] https://www.business-standard.com/companies/news/torrent-in-talks-to-acquire-l-t-thermal-unit-in-1-billion-deal-report-125072401810_1.html
[2] https://m.economictimes.com/industry/energy/power/torrent-is-said-in-talks-to-buy-lts-power-unit-for-1-bn/articleshow/122882273.cms