Reliance Industries Limited (RIL) and Saudi Aramco have mutually decided to pull out of a major investment proposal related to O2C. [Oil to Chemicals] The business of RIL was about $ 15 billion in this deal.
RIL late at night said, “Due to the 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 the O2C business in the light of the changed context.” ” statement on 19 November
“Consequently, the existing application with the NCLT for demerger of O2C business from RIL is being withdrawn,” the statement said.
The two companies had signed a non-binding letter of intent in August 2019 for a possible 20% stake acquisition by Saudi Aramco in RIL’s O2C business.
RIL said that over the past two years, both the teams put in significant efforts in the process of due diligence, despite the COVID restrictions.
RIL said it recently unveiled its plans for new energy and materials businesses by announcing the development of the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar.
It will be one of the largest integrated renewable energy manufacturing facilities in the world.
The complex’s four gig factories include an integrated solar photovoltaic module factory for the production of solar power, an advanced energy storage battery factory for the storage of intermittent energy, an electrolyser factory for the production of green hydrogen, and a fuel for converting hydrogen. SAIL factory will be included. In motive and steady power, RIL said.
“Jamnagar, which houses a major portion of O2C assets, is envisaged as a hub for Reliance’s new businesses in renewable energy and new materials, which supports the Net Zero commitment,” the company said in the cancellation decision. Justifying the reason behind said. Talks.
It said that deepening engagement over the past two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for wider areas of cooperation.
“Saudi Aramco and Reliance remain deeply committed to building a win-win partnership and will make future disclosures as appropriate,” it said.
“RIL will continue to be Saudi Aramco’s preferred partner for private sector investments in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia.”
“Both companies are committed to cooperate and work towards further strengthening the relationship in the years to come,” it added.
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