TotalEnergies Suspends New Investments in Adani Group Amid US Bribery Charges
French oil giant TotalEnergies has announced the suspension of new investments in Adani Group companies, following ongoing US bribery charges against the conglomerate’s founder, Gautam Adani. The suspension comes in response to an indictment accusing Adani and several associates of orchestrating a $265 million bribery scheme linked to operations at Adani Green Energy Limited (AGEL), one of the group’s key renewable energy arms.
In a statement, TotalEnergies confirmed that it was unaware of any U.S. investigations prior to its investments in Adani, and reiterated its firm stance against corruption in any form. While the indictment does not directly implicate AGEL or its subsidiaries, the French energy company, which holds a 19.75% stake in AGEL, emphasized its commitment to safeguarding its interests as a minority shareholder and joint-venture partner.
The decision to suspend investments includes halting any further financial commitments until the ongoing legal proceedings surrounding the Adani Group’s key figures are resolved. TotalEnergies’ financial exposure to the Adani Group is estimated between $4 billion and $5 billion, stemming from its investments in AGEL since acquiring a stake in the company in January 2021, as well as in other joint ventures aimed at expanding its renewable energy footprint in India.
This move follows TotalEnergies’ previous actions earlier this year, when it chose to withdraw from Adani’s ambitious $50 billion green hydrogen initiative after allegations of accounting irregularities emerged.
The latest announcement has sparked significant market reactions, with shares of Adani Green Energy dropping by over 11% initially, although they later recovered slightly. The suspension of investments marks a critical juncture for both TotalEnergies and Adani Group as legal and market uncertainties continue to swirl around the conglomerate.
While the Adani Group has denied all charges in the US indictment, this latest development underscores the mounting pressures the conglomerate faces as it seeks to navigate legal and financial challenges in the global spotlight.
