Aramco in talks with Reliance Industries for $25 billion deal

Aramco is eyeing a 20 per cent stake in the Reliance unit, which is roughly $20 billion to $25 billion. Reliance could reach an agreement with Aramco as soon as the coming weeks. 

Saudi Arabian petroleum company Aramco is in talks with Reliance Industries to acquire a stake in Reliance’s petroleum and chemical business, sources told Bloomberg. 

Aramco is eyeing a 20 per cent stake in the Reliance unit, which is roughly $20 billion to $25 billion. Sources close to the matter told Bloomberg that Reliance could reach an agreement with Aramco as soon as the coming weeks. 

According to the sources, as negotiations are still going on, it is not clear whether the transaction will go forward or will fall apart. Bloomberg noted that Aramco officials declined to comment on the matter. 

In June, Reliance Industries Chairman Mukesh Ambani had appointed Aramco Chairman Yasir Al-Rumayyan to the managerial board. During a shareholder meeting in June, Ambani had said that Reliance could finalize an investment deal with the oil producer this year. “We look forward to welcoming Saudi Aramco as a strategic partner in our O2C business.” 

The talks about the transaction began in 2019. It was expected to be finalized in March 2020 but got delayed. 

As reported by Bloomberg, Aramco’s market valuation is about $1.9 trillion. A transaction with the oil producer would give Reliance a stake of around 1% in the world’s biggest energy company.

Following the report of the transaction, Reliance’s share price which rose to Rs 2,197 per share, saw an increase of 2%.

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