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Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) and Saudi Aramco on Friday decided to re-evaluate the proposed Investment by Aramco in the oil-to-chemical (O2C) business in light of the Indian firm's new energy forays. 

Hence, the application with NCLT for segregating O2C business from RIL is being withdrawn, the company said in a statement.

Back in August 2019, RIL and Saudi Aramco signed a letter of intent for the latter to potentially acquire a 20% stake in the Ambani-led firm.

The stake sale talks are being reset in light of Reliance making forays into new energy business in recent months by investing $10 billion in alternative energy over three years.

To pivot to green energy, it has already bought a German maker of photovoltaic solar wafers and signed a deal with a Danish company to manufacture hydrogen electrolysers in India.

An official release stated, “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 Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn."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 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."

However, RIL will continue to be Saudi Aramco’s 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 added.

Meanwhile, the RIL stock closed at 2,367.15, up 1.90 or 0.080 per cent, on the NSE on Friday.

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Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Updated: 25 Dec 2021, 03:48 PM IST
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