Reliance Industries Limited (RIL) today said it has received National Company Law Tribunal (NCLT) nod to withdraw the company’s plan to demerge its oil-to-chemical (O2C) business into a separate entity.
With this, RIL’s earlier plan to include global oil giant Saudi Aramco as a stakeholder in the new entity comes to an end.
“We would like to inform that the Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT) in its order dated 3rd December, 2021 has approved the withdrawal of O2C Scheme. Order for withdrawal of O2C Scheme has been uploaded on this NCLT website today i.e. December 24, 2021,” the company informed the stock exchanges today.
The RIL board had approved the withdrawal of the O2C scheme on November 19, 2021, following which an application was submitted before the NCLT.
Back in August 2019, RIL and Saudi Aramco had signed a letter of intent to potentially acquire a 20 per cent stake in the Ambani-led firm. RIL wanted to create a separate entity for its O2C business with assets of $42 billion.
Billionaire Mukesh Ambani-led RIL and Saudi Aramco in November canceled a deal to sell a 20 per cent stake in RIL’s O2C business to Aramco in light of the Indian firm’s renewed energy efforts.
Subsequently, RIL had urged the NCLT to withdraw the application regarding demerger of O2C business from RIL. The stake sale talks were restarted in the light of Reliance entering the new energy business by investing $10 billion in alternative energy.
Meanwhile, RIL shares closed on 2,367.15 on the NSE on Friday, up 1.90 or 0.080 per cent.
Read also: RIL, Saudi Aramco decide to re-evaluate proposed investment in O2C business
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