Valuation Hurdles to delay RIL-Armaco deal

Saudi Arabia Oil Company is set to sign a deal with India’s Reliance Industries Ltd, 20% stake for $15 billion.

Saudi Arabia based oil company, Saudi Aramco or more formally known as Saudi Arabia Oil Company is set to sign a deal with India’s Reliance Industries Ltd.

In August 2019, Reliance Industries Chairman and Managing Director, Mukesh Ambani, said the RIL is set to sell 20 per cent stake of its refining and petrochemicals business to Aramco. The deal was set for selling a 20% stake for $15 billion.

Advertisement

In a meeting in July Mr Ambani had informed shareholders that due to unforeseen circumstances the original timeline of the deal has been disturbed.

In June, Aramco CEO Amin Nasser said, “With regard to the Reliance deal, all I can say at this stage, it’s (the deal) is going through the due diligence… (It) is a big deal. So, we need to take our time to review and then decide based on the outcome of the due diligence study.”