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Saudi Aramco eyes stake in India’s Reliance Industries

Saudi Aramco eyes stake in India’s Reliance Industries
Aramco may acquire 20% stake in Reliance’s O2C division

Riyadh - Mubasher: Saudi Aramco and Reliance Industries Limited (RIL) have signed a non-binding Letter of Intent (LoI) for the investment in the Oil to Chemicals (O2C) division including the refining, petrochemical, and fuels marketing businesses of RIL, according to a company statement released on Monday.

Saudi Aramco is planning to acquire 20% stake in the Indian company’s O2C division, which is based upon an enterprise value of $75 billion, RIL revealed.

“We have a long-standing crude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment. Saudi Aramco’s interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India,” chairman and managing director of RIL, Mukesh Ambani, commented.

Under the non-binding LOI, the transaction is subject to due diligence, and any final agreement will be subject to regulatory and other customary approvals.

 

Read more: Saudi Aramco’s net income declined to $46.9 billion during the first six months of 2019, compared to $53 billion in the year-ago period.