Torrent Power in Talks to Acquire L&T’s Thermal Power Unit for USD 1 Billion
30 Jul 2025
Torrent Power is reportedly in advanced discussions to acquire Larsen & Toubro’s (L&T) thermal power business in a deal valued at approximately USD 1 billion, including debt. The move comes as part of L&T’s broader strategy to divest non-core assets and streamline its focus toward infrastructure, technology, and engineering services.
According to sources familiar with the development, both companies have appointed financial advisors and are actively negotiating the terms of the deal. However, the discussions are ongoing and no binding agreement has been finalized. The possibility of other potential bidders entering the fray remains open, as the transaction is still subject to due diligence and final approvals.
For Torrent Power, this potential acquisition represents a strategic opportunity to scale up its presence in the thermal energy segment and strengthen its power generation portfolio. The Ahmedabad-based company already operates across the entire energy value chain, including generation, transmission, and distribution, and the addition of L&T’s thermal assets would enhance its capacity and market presence.
L&T, on the other hand, is looking to exit the thermal power segment to unlock value and redeploy capital into its core business areas. The sale is expected to help the company reduce debt and improve its return on invested capital.
While official comments from both companies are still awaited, industry analysts view the potential deal as a significant consolidation move in India’s energy sector. If completed, it would mark one of the largest recent transactions in the conventional power space, reflecting the evolving investment landscape in Indian energy infrastructure.
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