Mukesh Ambani’s Reliance hives off O2C business ahead of Aramco deal

• Reliance Industries Limited announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.
• "Reorganisation of O2C business facilitates participation by strategic investors and marquee sector focused investors," it added.
• Mumbai-headquartered oil major also announced that it aims to work with the O2C business to reduce its carbon footprint and become "net carbon zero" by 2035.
  

Mukesh Ambani-owned Reliance Industries Limited, India's most valuable company, announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.

In a late-night filing to stock exchanges, the company said the reorganization would enable a focused pursuit of opportunities across the O2C value chain, improved efficiencies through a self-sustaining capital structure.

"Reorganisation of O2C business facilitates participation by strategic investors and marquee sector focused investors," it added.

The demerger plans gained momentum after RIL resumed talks with the Saudi Arabia-based oil company, after months of pause caused by the coronavirus pandemic. RIL has acknowledged that there are “ongoing talks” with Aramco for a deal, without giving more details.

It further added that the company expects to get the necessary approvals for O2C business spin-off by the second-quarter of the next fiscal year. Mumbai-headquartered oil major also announced that it aims to work with the O2C business to reduce its carbon footprint and become "net carbon zero" by 2035.