RIL, Saudi Aramco decides investment in O2C business
Led by billionaire Mukesh Ambani, Reliance Industries Ltd (RIL) and Saudi Aramco decided to reassess Aramco’s proposed investment. In the oil and chemicals (O2C) business in light of the Indian firm’s new energy offensive. Accordingly, the application to NCLT to separate its O2C business from RIL will be withdrawn, the company said in a statement.
In August 2019, RIL and Saudi Aramco signed a letter of intent regarding acquiring a 20% stake in the company led by Ambani.
In recent months, negotiations for a share sale have now been suspended in light of Reliance’s raids on a new energy company. That has invested $10 billion in alternative energy over three years. To focus on green energy, it has purchased a German photovoltaic solar module manufacturer. And signed a contract with a Danish company to manufacture hydrogen electrolyzers in India.
An official statement said: “Due to the development of the business portfolio, Reliance, and Saudi Aramco have mutually decided. That it would be beneficial for both parties to make the proposed investment in the O2C business given the changing context. Therefore, the current application to NCLT to separate the O2C business from RIL is being withdrawn.”
RIL added, “The deep commitment over the past two years has given Reliance. And Saudi Aramco a better conclusion of each other and a platform for a wider area of collaboration. Saudi Aramco and Reliance are committed to building a successful partnership and will make future disclosures as necessary.
However, RIL will continue to partner with Saudi Aramco for private sector investment in India. And work closely with Saudi Aramco and SABIC to invest in Saudi Arabia.
