Reliance to spin off its Oil-to-Chemicals business for new partnerships – Mukesh Ambani says Saudi Aramco deal is still in the works
Reliancechairman Mukesh Ambanisaid that Reliance will spin off its Oil-to-Chemicals business, making way for new partnerships.
- Ambani said that the company will appeal for the same to the NCLT (National Company Law Tribunal) and expects to complete the process by 2021.
- He said that while the
Saudi Aramcodeal for equity investment in the O2C business has not yet taken off as per the original timeline, Reliance is very committed to a long term partnership.
AdvertisementReliance chairman Mukesh Ambani said that Reliance will spin off its Oil-to-Chemicals business, making way for new partnerships. Ambani said that the company will appeal for the same to the NCLT (National Company Law Tribunal).
“We will approach NCLT with our proposal to spin off our oil-to-chemicals business into a separate subsidiary to facilitate multiple partnership opportunities. We expect to complete this process by early 2021,” said Ambani during the Reliance Annual General Meeting.
He said that while the Saudi Aramco deal for equity investment in the O2C business has not yet taken off as per the original timeline, Reliance values the two decade long relationship with Saudi Aramco and is very committed to a long term partnership.
“The year gone by, was the most challenging for global refining and petrochemical industries, even in this uncertain and volatile environment. Our oil-to-chemical business outperformed the sector, and delivered an EBITDA of ₹55,394 crores. In the first two quarters this year, business and consumer activity had come to a halt in the energy market, leading to unprecedented demand destruction,” said Ambani.
In August 2019, the Saudi state-owned oil refiner, Aramco — one of the largest in the world — had agreed to buy a 20% state in the Reliance Industries’ oil to chemicals business for $15 billion.
Earlier in June, Saudi Arabia’s sovereign fund – Public Investment Fund had invested ₹11,367 crore ($1.5 billion) in Jio. The deal gives PIF a 2.32% stake in Jio
“We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia,” Ambani had said when the deal was signed.
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