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Reliance Industries Ltd and Saudi Aramco have decided to re-evaluate the 2019 deal under which the Saudi Arabian company was expected to pick 20 per cent stake in Reliance's oil to chemicals (O2C) business. Consequently, RIL has withdrawn its application with NCLT to hive off its O2C business.
“Due to evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context. Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn,” RIL said.
The two companies had signed a non-binding Letter of Intent in August 2019 for a potential 20 per cent stake acquisition by Saudi Aramco in the O2C business of Reliance.
“Over the past two years, both the teams made significant efforts in the process of due diligence, despite Covid restrictions. This has been possible due to the mutual respect and long-standing relationship between the two organisations,” RIL said in a statement.
New Energy & Materials businesses
However, Reliance recently unveiled its plans for the New Energy & Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It will be amongst the largest integrated renewable energy manufacturing facilities in the world.
RIL and Aramco could thrash a new deal in the future.
“The deep engagement over the last two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation. Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate,” the statement said.
RIL shall continue to be Saudi Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia.
Saudi Aramco and RIL have a very deep, strong and mutually beneficial relationship, that has been developed and nurtured by both companies over the last 25 years. Both companies are committed to collaborate and work towards strengthening the relationship further in the years ahead, RIL said.
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