Reliance: Saudi Aramco remains in discussion to pick stake in RIL unit
Reliance: Saudi Aramco remains in discussion to pick stake in RIL unit
Share:

Morgan Stanley said in a statement that Saudi Aramco remains in discussion for a potential deal to buy a 20 percent stake in its oil-to-chemical (O2C) unit. The statement made on  March 22 citing the Saudi firm’s analyst call post announcing 2020 earnings.

“Saudi Aramco’s CY20 conference call indicated that it is still in discussion with Reliance to evaluate existing opportunities as potential partners, regarding the non-binding MoU signed with Reliance for its O2C business,” Morgan Stanley said in a note.

Richest Indian Mukesh Ambani had in August 2019 announced talks for the sale of 20 percent stake in the O2C business, which comprises its twin oil refineries at Jamnagar in Gujarat and petrochemical assets, to the world’s largest oil exporter. The deal was to conclude by March 2020 but has been delayed.

Besides refineries and petrochemical plants, the O2C business also comprises a 51 percent stake in the fuel retailing business. It, however, does not include the upstream oil and gas producing assets such as the flagging KG-D6 block in the Bay of Bengal.

Reliance had in 2019 put USD 75 billion as the value of O2C business after signing a non-binding letter of intent with Saudi Aramco.

With asset prices, industry outlook, and margins back to August 2019 levels, it saw a revival of the earnings upgrade cycle, led by energy. Multiples should surprise positively too as clarity on new energy investments rises.

Adani Ports acquires controlling stake in Gangavaram Port for Rs3604-Cr

Govt Raises PF deposit threshold limit to Rs.5 lakh for earning tax-free interest

Pandemic impact: 280 companies declared bankrupt amid covid crisis

 

Join NewsTrack Whatsapp group
Related News