Torrent Power Ltd. is in advanced talks to acquire the thermal power business of Larsen & Toubro Ltd., with an agreement likely to be finalized before the end of the year, Bloomberg reported, citing people familiar with the matter.
According to the same Bloomberg report, the proposed transaction may value the business at approximately $1.2 billion, including debt. While negotiations are nearing conclusion, the sources noted that terms could still evolve and that additional bidders may emerge. Both companies declined to comment on the ongoing discussions.
Talks between Torrent Power and L&T have been underway for several months. In July, Bloomberg had reported that a deal valued at about $1 billion was under consideration.
L&T, headquartered in Mumbai, operates across sectors such as energy, construction, manufacturing and services. The company’s shares have risen nearly 11% this year, taking its market capitalization to about ₹5.6 trillion ($63 billion). By comparison, India’s Sensex index has gained 9% year-to-date.
Torrent Power, part of the Ahmedabad-based Torrent Group, has seen its stock decline about 12% this year and currently holds a market valuation of approximately ₹663 billion.
