Reliance Industries, Saudi Aramco decide to re-evaluate proposed investment in O2C business
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Mumbai : Mukesh Ambani-led Reliance Industries (RIL) and Saudi Aramco have decided to re-evaluate the proposed investment by the Saudi Arabian company in the oil-to-chemical (O2C) business in light of RIL’s foray into new energy businesses.
“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 Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn” RIL said in a statement.
Back in August 2019, the two companies had signed a non-binding Letter of Intent for a potential 20% stake acquisition by Saudi Aramco in the O2C Business of Reliance.
RIL 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 further said, “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. RIL shall continue to be Saudi Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco & SABIC for investments in Saudi Arabia”.