The deal between Reliance Industries (RIL) and Saudi Aramco for a 20 per cent stake acquisition by the Saudi firm in the oil to chemicals (O2C) business of RIL is now on the back burner.
“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the current application with National Company Law Tribunal (NCLT) for segregating the O2C business from RIL is being withdrawn,” RIL said in a statement on Friday night.
The two had signed a non-binding Letter of Intent in August 2019 for the potential deal.
On Friday, RIL said that Jamnagar, which accounts for a major part of the O2C assets, is envisaged to be the centre for Reliance’s new businesses of Renewable Energy and New Materials, supporting the Net-Zero commitment.
RIL said that it has recently unveiled its plans for the New Energy & Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar.
RIL also said that it shall continue to be Saudi Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco & SABIC for investments in Saudi Arabia.
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