In light of the Indian firm’s new energy forays, Mukesh Ambani led Reliance Industries Ltd and Saudi Aramco made a decision on November 19 to re-evaluate the proposed Investment in the Oil-to-chemical (O2C) business.
In August 2019, RIL and Saudi Aramco signed a letter to acquire a 20 per cent stake in RIL.
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 Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn.”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.”
RIL will still continue to be Saudi Aramco’s partner for investments in India’s private sector in India and will collaborate with SABIC for investments in Saudi Arabia.