12 Aug – Reliance to Sell Stake to Saudis at $75 Billion Value
Saudi Aramco continued its push into Asian oil refining with an agreement announced Monday to buy a 20% stake in Reliance Industries Ltd.’s oil-to-chemicals division at an enterprise value of $75 billion.
The deal, announced by Reliance Chairman Mukesh Ambani at the company’s annual general meeting in Mumbai, is the biggest foreign investment in the company’s history and covers all of Reliance’s refining and petrochemical operations, including the Jamnagar refinery, the world’s biggest. Aramco, the world’s biggest crude exporter, will also supply the refinery with 500,000 barrels of oil a day on a long-term basis, Ambani said.
The deal is subject to due diligence, definitive agreements and regulatory and other approvals, Ambani said.
Middle Eastern oil giants like Aramco have been expanding into downstream operations as they seek to move from being pure producers to becoming more integrated energy companies. Reliance’s debt has risen over the past few years, as the Indian conglomerate poured money into new sectors such as telecommunications, and stood at $32 billion at the end of December.