Mumbai, November 20, : .Reliance Industries Limited and Saudi Aramco agreed to review the investment proposal of the former in RIL’s “O2C”. Accordingly, the NCLT has withdrawn the application for segregation of O2C and RIL.
Both companies signed an unbinding Letter Of Intent in August 2019 for Saudi Aramco to acquire a possible 20 percent stake in RIL’s O2C segment.
“Despite Covid restrictions, the two teams have made substantial efforts over the last two years to ensure due diligence.RIL released a statement Friday stating that this was possible because of the long-standing and mutual respect between both organisations.
Reliance has recently announced its plans to expand the ‘New Energy & Materials” businesses with the announcement of Jamnagar’s Dhirubhai Ambani Green Energy Giga Complex.The facility will boast one of the most advanced integrated facilities for renewable energy production in the world,” the company said.
Jamnagar is a significant part of O2C assets and will be Reliance’s centre for new business of ‘Renewable Energy & New Materials,’ which support the net zero commitment.
Reliance has agreed with Saudi Aramco that due to Reliance’s changing business portfolio it would be in the best interests of both of them to reconsider the investment proposal in O2C businesses.According to the statement, NCLT has withdrawn the application for segregation of O2C from RIL.
Reliance’s deep engagement with Saudi Aramco over the past two years has helped them to gain a better understanding each other and provided a platform to expand their cooperation.It stated that Reliance and Saudi Aramco are committed to a win-win partnership.
The statement states that RIL will continue to be Saudi Aramco’s preferred partner in investments in India’s private sector and will work with Saudi Aramco & SABIC to invest in Saudi Arabia.
RIL and Saudi Aramco have had a 25-year relationship that has grown and been nurtured.The statement stated that both companies are determined to work together and strengthen the relationship in the future.
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