Greenko Energy Holdings and AES Corporation of US have emerged as the front runners to acquire a stake of Massachusetts-headquartered NEC Energy Solutions, in a deal potentially valued at around $300 million, said two people aware of the development. 

The Sovereign funds GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority (ADIA)-backed Greenko have been preparing to pivot towards battery storage. On September 13, Greenko Energy Holdings has the plan to invest $ 1 billion in the new business of battery storage. Also plan to produce lithium-ion batteries in India for power grid-scale applications and electric vehicles (EVs), as per Livemint reported.

An NEC Corporation spokesperson in an emailed response said, “I’m afraid we are not able to comment on market speculation on potential agreements.” “The due diligence on NEC Energy Solutions is taking place. AES and Greenko are the ones left in the race to acquire it, with the deal having an enterprise value of around $300 million. It shall be announced shortly,” said a person aware of the development cited above requesting anonymity.

Greenko has issued fresh capital for renewables of 3.0 investment to acquire and develop lithium-ion battery technology, and for its manufacturing and application playbook. This comes against the backdrop of the single-largest foreign clean energy investment announcement in India made by Japan’s ORIX Corp. for $980 million in Greenko for a 17 per cent stake.