India’s Adani Group is exploring potential partnerships in Saudi Arabia, including the possibility of buying a stake in the world’s largest oil exporter Saudi Aramco.
The group, led by chairman and founder Gautam Adani, has held initial talks on potential joint investment opportunities and cooperation with Saudi Aramco and the country’s Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund. In addition, it has discussed buying part of the PIF’s stake in Aramco.
Adani Group is unlikely to shell out billions of dollars for Aramco stock. Instead, at least in the short term, it could seek to link investment to a broader tie-up or asset swap deal.
The Indian firm could also partner with subsidiaries of Aramco like Sabic in renewable energy, crop nutrients, or chemicals. In addition, Adani may also offer the PIF an opportunity to invest in infrastructure in India.
Saudi Aramco had spent more than two years negotiating with Reliance Industries Ltd for a potential $15 billion investment in its oil-to-chemicals unit. However, the talks were scrapped in November of last year. At that time, Aramco had said that it would continue to look at investing in India.
Last month, the Saudi government transferred a 4% stake to PIF. The shares are now valued at about $89 billion. PIF has kicked off discussions about monetising that holding as it seeks to raise funds for its investment goals.
Gautam Adani is Asia’s second-richest person with an estimated net worth of about $90.5 billion. Adani Group has a range of businesses covering ports, power, renewable energy, airports, coal trading and data centres.
In January, Adani signed a pact with South Korea’s Posco to explore business opportunities in India. The agreement includes setting up a green steel mill in Gujarat, with a potential investment of $5 billion over the coming years.
Saudi Arabia has been looking to boost ties with India for several years. During a 2019 visit to meet Prime Minister Narendra Modi, Saudi Crown Prince Mohammed Bin Salman said the country could invest $100 billion into India.
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