Reliance Industries, Saudi Arabia's Aramco decides to reconsider sale of stake in oil-to-chemicals. | MCU Times

Reliance Industries, Saudi Arabia’s Aramco decides to reconsider sale of stake in oil-to-chemicals.

Confidence in reassessing Saudi Aramco's share of oil-to-chemicals arm

Reliance will reassess its share of oil-to-chemicals sales

Billionaire Mukesh Ambani-led Reliance Industries has withdrawn its application to the National Company Law Tribunal (NCLT) to separate its oil-to-chemicals (O2C) business, following a mutual decision with Saudi Aramco to reconsider the share sale of O2C Arm. The move came in light of Reliance’s new energy business plans and the ” development of its business portfolio ”, according to a regulatory application to the stock exchanges.

Here are the top 10 points for this great story

  1. In August 2019, Reliance Industries – which operates the world’s largest refinery – had signed a letter of intent with the largest oil exporter Saudi Aramco stating that the latter could potentially acquire a 20 percent stake in its oil-to-chemicals division. The $ 15 billion deal was expected to close in March 2020, but was delayed.

  2. However, Reliance said in a statement today that it would be “beneficial for both parties” to reconsider the proposed investment in O2C business “in the light of the changed context”.

  3. Saudi Aramco’s stake in the O2C arm is being reassessed as Reliance recently unveiled its plans for the new energy business, following its investment in alternative energy.

  4. ” Reliance recently unveiled its plans for the New Energy & Materials companies by announcing the development of the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. It will be among the largest integrated plants for the production of renewable energy in the world, ” the company said in its statement today.

  5. The four Giga plants – which will be part of the complex – will include a fuel cell plant, an integrated solar cell plant, an electrolysis plant and a plant for energy storage batteries.

  6. Jamnagar – which accounts for a large part of the O2C assets – is likely to become the center of Reliance’s new renewable energy and materials business, supporting the net zero commitment.

  7. Reliance will continue to be Saudi Aramco’s preferred partner for private sector investment in India and will work with Saudi Aramco and SABIC on investment in Saudi Arabia, the statement added.

  8. Last month, Reliance announced that a required majority of its shareholders passed a resolution appointing Saudi Aramco chairman Yasir Al-Rumayyan as an independent director of the conglomerate’s board.

  9. Reliance, however, said Yasir Al-Rumayyan’s appointment to the company’s board has nothing to do with its O2C deal with Saudi Aramco. (Also read: Reliance Industries adds Aramco chairman as independent director: Report)

  10. On Friday, November 19, shares of Reliance Industries fell 0.35 percent higher to Rs 2,472.75 apiece on BSE.

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