According to a report by Bloomberg on Monday, Saudi Aramco is in advanced negotiations to acquire a 20% stake in Reliance Industries Ltd’s oil refining and chemicals business for around $20 billion to $25 billion in Aramco’s shares.
An agreement is expected to be reach in the coming weeks, said the report citing sources with knowledge of the matter at hand.
Both, Aramco and Reliance declined comment.
In 2019, Reliance had announced a 20% sale of its stake in its oil-to-chemicals business to Aramco for $15 billion; that deal stalled following the bottoming out of oil prices due to the coronavirus pandemic.
In August this year, during an earnings call, Aramco’s Chief Executive Officer Amin Nasser had said, it was still doing due diligence on the deal.
In late June, Reliance’s chairman Mukesh Ambani had opined that he hopes to formalize the company’s partnership with Aramco sometime this year following which Aramco’s Chairman Yasir Al-Rumayyan will join Reliance’s board as an independent director.
With the news reaching the market, Reliance’s shares were up by 2% at 2,187.80 rupees.