dependency industries: RIL withdraws NCLT’s request for O2C transfer, to start new negotiations with Saudi Aramco for the sale of shares

Reliance Industries has scrapped plans to sell its petroleum-to-chemicals (O2C) business, planned as part of a possible sale of a stake to Saudi Aramco, paving the way for further negotiations between the two companies. said the company will continue to be Saudi Aramco’s preferred partner for private sector investments in India and that it will work with Saudi Aramco and SABIC for investments in Saudi Arabia.

On Friday evening, India’s largest private sector company by market capitalization said it had withdrawn its application to the National Company Law Tribunal (NCLT) for segregation of O2C business. RIL first announced that it was in talks with Saudi Aramco to sell a 20% stake in its O2C business in August 2019. Subsequently, the company announced a detailed plan to create a separate entity for the company. in September 2020.

“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 reassess the proposed investment in O2C business in light of the changed environment.” RIL said in a statement. declaration.

RIL had filed a proposal to split the O2C business with NCLT in Mumbai and Ahmedabad and previously said it expected approvals by Q2 2021-2022. RIL said both entities “have made significant efforts in the due diligence process” despite Covid’s restrictions.

“The deep engagement over the past two years has allowed Reliance and Saudi Aramco to better understand each other, providing a platform for broader areas of cooperation. Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures where appropriate, ”said RIL.

The negotiation between RIL and Saudi Aramco can now include the new own initiatives announced by the company headed by Mukesh Ambani.

RIL stock closed at Rs 2,473 on Thursday on BSE, up 0.35% from the previous close. Indian markets were closed on Friday.

In June, Ambani announced ambitious plans to invest Rs 75,000 crore over the next three years to start a new clean energy company to fuel the conglomerate’s commitment to be carbon neutral by now. 2035. The plan has three parts – a base investment of Rs 60,000 in four of the giga factories that will manufacture and fully integrate all critical components for the business; an investment of Rs 15,000 crore in building the value chain, partnerships and future technologies, including upstream and downstream industries; and the reorientation of the company’s engineering, project management and construction capabilities towards clean energy.

“Jamnagar, which represents a significant portion of O2C assets, is expected to be the center of Reliance’s new renewable energy and new materials business, supporting the net zero commitment,” said RIL.

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