TotalEnergies halts Adani investments over bribery charges.
French oil giant TotalEnergies has decided to halt further investments in the Adani Group, citing concerns over bribery allegations. The decision comes in response to charges filed in the United States that accuse certain individuals within the Adani Group of involvement in a bribery scheme. TotalEnergies, which has previously been linked to the Adani Group through joint ventures and projects, has committed to refraining from any additional financial commitments until the allegations are thoroughly resolved.
This move marks a significant shift in TotalEnergies’ approach toward the Indian conglomerate, reflecting growing international scrutiny over corporate governance and ethical practices. The company stated that it is closely monitoring the situation and is waiting for the outcome of investigations into the bribery charges before proceeding with any future investments.
The Adani Group has yet to respond publicly to these allegations, but this development underscores the increasing pressure faced by large corporations involved in global business partnerships to ensure transparency and accountability in their operations.
French oil giant TotalEnergies has decided to suspend new investments in Adani Group companies in light of ongoing bribery charges against the conglomerate’s founder, Gautam Adani. The move comes after Adani and several associates were indicted for allegedly orchestrating a $265 million bribery scheme related to the operations of Adani Green Energy Limited (AGEL).
Investigation at the time of its investments. The company also reaffirmed its commitment to rejecting corruption in all forms, highlighting that the indictment does not directly implicate AGEL or its associated companies. Despite this, TotalEnergies has pledged to withhold further financial commitments until the allegations against Adani Group individuals are resolved.
This includes investments made since acquiring its stake in AGEL in January 2021, as well as subsequent ventures aimed at expanding its renewable energy portfolio in India. TotalEnergies has previously made joint ventures with Adani, particularly focusing on renewable energy initiatives.
This suspension of new investments marks the latest action by TotalEnergies in response to the ongoing legal issues surrounding Adani. Earlier this year, the company had already halted participation in Adani’s $50 billion green hydrogen project after allegations of accounting irregularities surfaced. The company’s decision to freeze further investments highlights its cautious approach in light of the legal challenges facing Adani Group.
The financial ramifications of these developments have been felt in the market, with shares of Adani Green Energy dropping over 11% following the announcement. However, the stock later experienced a slight recovery, reflecting the ongoing volatility surrounding Adani Group companies amid the bribery allegations.
TotalEnergies’ stance underscores the risks for investors involved with Adani Group at a time when the conglomerate faces heightened scrutiny. The French oil company’s caution is part of a broader trend where international companies are reassessing their associations with Adani Group as legal challenges mount. As the investigation progresses, TotalEnergies has made it clear that it will protect its interests as a minority shareholder and joint-venture partner, carefully monitoring the situation before making further financial decisions.
The outcome of this case, particularly the resolution of the bribery charges, will likely have significant implications for both TotalEnergies and other investors with exposure to Adani Group. The company’s actions suggest that it is prioritizing its corporate ethics and commitment to transparency while navigating the complex landscape of international business partnerships.