Reliance’s deal talks with Saudi Aramco gaining momentum

Reliance’s deal talks with Saudi Aramco gaining momentum

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FILE PHOTO: A woman walks past a poster of Reliance Industries installed outside the venue of the company’s annual general meeting in Mumbai June 7, 2012. REUTERS/Vivek Prakash

BENGALURU (Reuters) – Reliance Industries Ltd RELI.NS and Saudi Aramco 2222.SE are resuming talks over a 20% stake sale by the Indian conglomerate in its oil-to-chemical business after a brief pause due to COVID-19 pandemic, ET Now reported on Monday, citing sources.

Both the companies were committed to the deal and Aramco wants to do physical inspection of Reliance’s assets in India, the report said.

The deal, estimated to be about $15 billion as of August last year, had stalled over price, Reuters reported earlier this year.

Reliance’s shares have been on a tear in 2020, rising more than 35% so far this year, as it raised billions of dollars from global investors for its digital and retail arms.

Reliance and Aramco did not immediately respond to Reuters’ request for comments.

Reliance Chairman and Asia’s richest man Mukesh Ambani told shareholders in July that the deal had been delayed due to “unforeseen circumstances in the energy market and the COVID-19 situation.”

The oil-to-telecoms company in October reported a 15% drop in September-quarter profit as the coronavirus crisis hammered its mainstay energy business, although it reaped double-digit revenue growth at its Jio telecom service.

Reporting by Nallur Sethuraman in Bengaluru; Editing by Rashmi Aich

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