The mega-deal involving Saudi Aramco and
Reliance Industries has taken one step closer as reports stated that the two giants are in advanced talks for an all-stock deal under which Aramco will acquire a stake in the Mukesh Ambani-led company.
According to a Bloomberg report, the Saudi Arabian firm is discussing the purchase of a roughly 20% stake in the Reliance unit for about $20 billion to $25 billion worth of Aramco shares, the people said, asking not to be identified because the information is private. Reliance, which is backed by Indian billionaire Mukesh Ambani, could reach an agreement with Aramco as soon as the coming weeks, the people said.
The report said that details of the potential transaction are still being negotiated, and talks could drag on longer or fall apart, the people said. A representative for Aramco declined to comment. The Saudi government’s Center for International Communication didn’t immediately respond to an email requesting a comment.
Earlier in June, at RIL's 44th AGM, the chairman and MD, Mukesh Ambani made it official and welcomed Saudi Aramco as a strategic partner for O2C business. He said, "As an important of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner for our OC2 business."
On deal with Aramco, Ambani added, "Despite several challenges due to Covid-19, we have made substantial progress in the past year in our discussions. These discussions have been held in the spirit of mutual commitment to convert our long-standing relationship into a perpetual partnership... This continued engagement and resolve from both sides even during this pandemic - is a testimony of the strong relationship between Saudi Aramco and Reliance."
Further, Ambani had welcomed Saudi Aramco's Chairman Yasir Al Rumayyan RIL as the independent director on the company's board.
Ambani expects the partnership with Aramco to be formalized expeditiously during this year.
At around 10.45 AM, RIL was trading at Rs2173 per piece flat compared to the previous closing on Sensex. The stock has touched an intraday high and low of Rs2185 per piece and Rs2162 per piece respectively.