Reliance-Aramco Deal: The $15 Billion deal between Reliance and Aramco has currently been put on hold. The clauses of the deal would now be re-evaluated, news agency PTI reported.
Billionaire industrialist Mukesh Ambani's Reliance Industries Limited (RIL) has announced a revaluation of their deal with Saudi Arabian company Saudi Aramco, under which Aramco would acquire a 20% stake in RIL's Oil Refinery and Petrochemical business in exchange for $15 Billion.
$15 billion deal to be re-evaluated:
Ahead of the announcement late on Friday night, Reliance Industries had twice missed its self-set deadline for the deal.
"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," the Indian firm said late Friday, adding that it will continue to be Saudi Aramco's "preferred partner" for investments in India's private sector.
News for stake sale first surfaced officially in August 2019. Meanwhile, in three years, Reliance entered the new energy business by investing $10 Billion in alternative energy. In view of this, the deal is being reassessed.
Ambani had in company's annual general meeting of shareholders in August 2019 announced talks to sell a 20 per cent in the oil-to-chemicals (O2C) business, which comprises its twin oil refineries at Jamnagar in Gujarat, petrochemical assets and 51 per cent stake in fuel retailing joint venture with BP, to the world's largest oil exporter
The Indian company believes that Aramco's proposed investment was only for oil refining and petrochemical business, but now as Reliance has also entered the field of green energy, a fresh evaluation on the deal is now required.