Masdar exits ReNew delisting: State-owned renewables giant Masdar withdrew from a consortium seeking to take India-based ReNew private, effectively ending a deal that would have seen the consortium delist the firm from Nasdaq, according to a regulatory disclosure.

It’s not clear what happened. Masdar informed other consortium members that it would not proceed with the transaction, without disclosing the reason. The consortium included Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (Adia), and ReNew founder and promoter Sumant Sinha. CPPIB, Adia, and Sinha together hold about 64% of ReNew, while Masdar was joining as a new investor.

Background: The proposed transaction, led by Masdar, involved a final allcash offer of USD 8.15 per share on 15 October — up 15.3% from the initial USD 7.07 offer made in December 2024.

Why it matters

The proposed transaction offered Masdar a strategic inroad into India’s green energy sector through ReNew, which commands 9-10% of the country’s renewables production capacity. ReNew’s operational and under-construction projects add up to 18.5 GW of clean energy projects as well as 6.5 GW in solar module manufacturing facilities, according to Economic Times.

Market reax: Following the withdrawal, ReNew’s stock value dropped 28%, trading at USD 5.5 on Tuesday versus USD 7.55 at Friday’s closing bell.

Also from the India<>Mena corridor-

Emirates NBD (ENBD) is likely to drop its plans to acquire a stake in Indian state-run lender IDBI Bank after Canada’s Fairfax Financial emerged as a frontrunner, competing with Mumbai-based Kotak Mahindra Bank, Economic Times reports. The Dubai-based lender is reportedly reassessing participation as Fairfax and Kotak Mahindra firm up their final bids ahead of the end-of-December deadline.

Fairfax is evaluating an allcash bid broadly aligned with IDBI Bank’s market valuation, while Kotak is considering a mix of banknotes and shares. Fairfax has prior operating experience in India’s banking sector, having acquired a controlling stake in CSB Bank in 2018.

REMEMBER- The Indian government and state-owned Life Ins. Corporation of India are selling a combined 60.72% stake worth around USD 7 bn in IDBI Bank.

Our take

Even as the Indian government is keen to allow more foreign investors to pick up major stakes in Indian banks, it would likely prefer to opt for a diverse set of investors to safeguard governance and spread risks across multiple stakeholders.

ENBD already made a strategic acquisition in India, investing USD 3 bn for a majority stake in RBL Bank, a transaction blessed by the government through special regulatory approvals. Although the Dubai bank seeks to establish a long-term and widespread presence in India, tapping into a credit-hungry and fast-growing market, its RBL Bank acquisition fulfills those objectives without overstretching its capital allocation in a competitive sector already dominated by domestic giants.

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