Reliance Industries Ltd and Saudi Aramco have decided to re-evaluate the 2019 deal, under which the Saudi Arabian company was expected to take a 20 per cent stake in Reliance’s oil to chemicals (O2C) business. Consequently, RIL has withdrawn its application with NCLT for demerger of its O2C business.
“Due to the 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 the O2C business in light of the changed context. Consequently, the present application with the NCLT for separation of O2C business from RIL is being withdrawn,” RIL said.
The two companies had signed a non-binding letter of intent in August 2019 for the acquisition of a potential 20 per cent stake by Saudi Aramco in Reliance’s O2C business.
“In the last two years, both the teams put in significant efforts in the process of due diligence, despite the COVID restrictions. This has been possible due to the mutual respect and long standing relationship between the two organizations, RIL said in a statement.
new energy and materials business
However, Reliance recently unveiled its plans for new energy and materials businesses by announcing the development of the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. It will be one of the largest integrated renewable energy manufacturing facilities in the world.
RIL and Aramco may sign a new deal in future.
“The deepening engagement over the past two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for wider areas of cooperation. Saudi Aramco and Reliance remain committed to building a win-win partnership and will appropriate future disclosures, the statement said.
RIL will continue to be Saudi Aramco’s preferred partner for private sector investments in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia.
Saudi Aramco and RIL share a very deep, strong and mutually beneficial relationship, which has been developed and nurtured by both companies over the past 25 years. RIL said that both the companies are committed to cooperate and work towards further strengthening the relationship in the years to come.
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