Reliance will re-evaluate its stake sale of oil-to-chemicals arm Billionaire Mukesh Ambani-led Reliance Industries has withdrawn its application with the National Company Law Tribunal (NCLT) for segregating its oil-to-chemicals (O2C) business, following a mutual decision with Saudi Aramco to re-evaluate the stake sale of the O2C arm.
The move came in light of Reliance's new energy business plans and the ''evolving nature of its business portfolio'', as per a regulatory filing to the stock exchanges.
In August 2019, Reliance Industries -which operates the world's largest refinery, had signed a letter of intent with top oil exporter Saudi Aramco, for the latter to potentially acquire a 20 per centstake in itsoil-to-chemicals arm.The$15 billion dealwas expected to be completed by March 2020 but was delayed.However, Reliance saidin its statement today that it would be ''beneficial for both parties'' to re-evaluate the proposed investment in O2C business ''in light of the changed context''.Saudi Aramco's stake in the O2C arm is beingre-evaluated as Reliancerecently unveiled its plans forthe new energy business, following its investments in alternative energy.''Reliance recently unveiled its plans for the New Energy - Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar.
It will be amongst the largest integrated renewable energy manufacturing facilities in the world,'' said the company in its statement today.The four Giga factories - which will be a part of the complex, will include a fuel cell factory, anintegrated solar photovoltaic module factory, an electrolyser factory, andan energy storage battery factory.Jamnagar - which accounts for a major part of the O2C assets, is likely tobe the center for Reliance's new businesses of renewable energy and new materials, supporting the net-zerocommitment.Reliance willcontinue to be Saudi Aramco's preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco andSABIC for investments in Saudi Arabia, the statement added.Last month, Reliance announced that arequired majority of its shareholders passed a resolution to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to the conglomerate's board.However, Reliance said that Yasir Al-Rumayyan's appointment to the company's board has no connection to its O2C deal with Saudi Aramco.
(Also Read:Reliance Industries To Add Aramco Chairman As Independent Director: Report)On Friday, November 19, shares of Reliance Industries settled 0.35 per cent higher at Rs 2,472.75 apiece on the BSE.