test


Member ID:
Password: 
Stay logged in for 30 days
Forget Your Password?
close

login CCFGroup App

Industry News | Time: Aug 13 2019 9:43AM
Saudi Aramco to buy 20% in RIL's petro arm for $15 billion
 
Text size
In the second-largest foreign investment in India, Saudi Aramco, the world's biggest oil producer and the most profitable company in history, will acquire a 20% stake in Reliance Industries' refining and petrochem businesses for $15 billion. TOI was the first to report about the impending deal in its April 17 edition this year.

The investment, subject to due diligence and regulatory approvals, will help RIL, India's largest private sector company, cut its debt of Rs 1.54 lakh crore ($22 billion). RIL chairman Mukesh Ambani made the announcement at the company's annual shareholder meeting here on Monday. The deal signifies “the perfect synergy” between the two companies, Ambani said.

Saudi Aramco has been supplying crude oil to RIL's Jamnagar refinery — the world's largest — for over 25 years. While it first showed interest in investing in RIL around the end of last year, talks gathered momentum following the visit of Saudi crown prince Mohammed bin Salman to India in February, during which he met Ambani. MBS has been expanding Aramco, the state-owned company, to new markets, particularly in Asia. With New Delhi suspending Iranian oil import, Saudi Aramco will benefit from the RIL deal.

Under the deal, RIL will carve out the refining, petrochemicals and fuel marketing businesses into a separate division.

Aramco to get 1 seat on RIL board

After creating a separate division for its refining, petrochem and fuel marketing businesses, RIL will issue preferred stocks to Saudi Aramco with respect to this division, which has an enterprise value of $75 billion, including debt.

Saudi Aramco will get one seat on the board of RIL and it will also have the right to appoint its executives in key managerial positions. The division will be converted into a company within five years with Saudi Arabia holding a 20% stake in it.

Once RIL's oil-to-chemicals division is turned into a separate entity, it will become an investment or holding company on the lines of Tata Sons. Already, RIL's consumer-facing businesses, Jio and Retail, are separate companies with the parent holding controlling stakes in them.

Source: The Times of India
Aug 13, 2019
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Related Articles
Hengyi Brunei keeps stable operation
State cotton reserves on Dec 11, 2019
Economic operation of printing and dyeing industry in Jan-Oct 2019
State cotton reserves on Dec 10, 2019
Scientific research project of Dayin Group gets support
State cotton reserves on Dec 9, 2019
Ceiling price of China's state cotton purchase auction during Dec
State cotton reserves on Dec 6, 2019
State cotton reserves on Dec 5, 2019
Hainan Yisheng receives PX from Hengyi Brunei
 
Research
Review and brief outlook on acrylic market
2019 state cotton reserves sales structure analysis
China PET bottle chip supply demand change and future trend
Operation and development of virgin PSF and recycled PSF
Basic situation of polyester market in Q1-Q3 and Q4 ...
Spandex supply and demand in 2019 and market outlook
 
 

浙公网安备33010902000742号