Reliance will re-evaluate its stake sale of oil-to-chemicals arm
Billionaire Mukesh Ambani-led Reliance Industries has withdrawn the application with the National Company Law Tribunal (NCLT) for segregating its oil-to-chemicals (O2C) business after it decided with Saudi Aramco to re-evaluate the stake sale of the O2C arm. The move came in light of the multinational conglomerate's new energy business plans and the ''evolving nature of its business portfolio'', according to a regulatory filing by Reliance Industries to the stock exchanges on Friday.
In August 2019, Reliance Industries - which operates the world's largest refinery, signed a letter of intent with top oil exporter Saudi Aramco, for the latter to potentially acquire a 20 per cent stake in the oil-to-chemicals arm of the Ambani-led firm. The $15 billion deal was expected to be completed by March 2020 but was delayed.
The proposed investment in the O2C arm will be re-evaluated as Reliance has made forays into new energy business and also invested in alternative energy. ''Reliance recently unveiled its plans for the New Energy & Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It will be amongst the largest integrated renewable energy manufacturing facilities in the world,'' said the company in its statement today.
Jamnagar - which accounts for a major part of the O2C assets, is likely to be the centre for Reliance's new businesses of renewable energy and new materials, supporting the net-zero commitment.
Reliance will continue to be Saudi Aramco's preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia, the statement added.
On Friday, November 19, shares of Reliance Industries settled 0.35 per cent higher at Rs 2,472.75 apiece on the BSE.
