TotalEnergies Cuts Ties with Adani Group Amid US Bribery Probe

French oil major TotalEnergies SE has announced that it will sever its ties with the Adani Group of companies following last week's U.S. federal indictment, citing a pending investigation into bribery and corruption allegations.

In a statement on Monday, TotalEnergies confirmed that it was not aware of an ongoing U.S. investigation into Adani Green Energy Limited until after the company's shares were affected by the US Federal Bureau of Investigation (FBI) search warrant seizures.

"We were not made aware of the existence of an investigation into an alleged corruption scheme," said TotalEnergies.

Until the accusations against the Adani Group individuals and consequences are clarified, TotalEnergies will stop making any new financial contributions to its investments in Adani Group companies. The move comes after U.S. prosecutors charged eight people, including Indian tycoon Gautam Adani, his nephew Sagar Adani, and former Adani Green Energy Limited CEO, with corruption and bribery.

The charges allegedly involve promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages. TotalEnergies had previously purchased a 19.75% stake in Adani Green Energy in January 2021, just months before the alleged payments began.

Total also owns stakes in other Adani Group companies, including Adani Total Gas Limited, with which it has three renewable joint ventures. The FBI served search warrants on Sagar Adani and seized evidence related to these partnerships after finding two of those joint ventures were entered into following the allegations.

As a result of this update, shares of TotalEnergies declined 0.04% at 0945 GMT on Monday, as investors weigh the implications of being associated with potentially tainted companies.