RIL, Saudi Aramco decide to re-evaluate proposed investment in O2C business

Therefore, the application for demerger of O2C business from RIL is being withdrawn with NCLT, the company said in a statement.

Back in August 2019, RIL and Saudi Aramco later signed a letter of intent to acquire 20% stake in the Ambani-led firm.

The stake sale talks are being restarted in the light of Reliance entering the new energy business in recent months by investing $10 billion in alternative energy over three years.

To move towards green energy, it has already bought a German manufacturer of photovoltaic solar wafers and signed an agreement with a Danish company to manufacture hydrogen electrolysers in India.

An official release said, “Due to the evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it is beneficial for both parties to re-evaluate the proposed investment in the O2C business in the light of the changed context.” Consequently, the present application with NCLT for demerger of O2C business from RIL is being withdrawn.”

RIL further said, “Deeper 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 are beneficial to each other. Committed to building a partnership and will make future disclosures as appropriate.”

However, RIL will continue to partner with Saudi Aramco for private sector investments in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia.

“Saudi Aramco and RIL share a very deep, strong and mutually beneficial relationship, which has been developed and nurtured by both companies over the past 25 years. Both the companies are committed to cooperate and work towards further strengthening the relationship in the years to come.”