Saudi Aramco to acquire 20% stake in RIL’s oil-to-chemical business

Saudi Aramco and Reliance Industries (RIL) have signed a letter of intent for a proposed investment in RIL’s oil-to-chemical division, the company announced at its annual general meeting (AGM) on Monday. The deal is likely to fetch $15 billion (~1.06 trillion) for a 20 per cent stake.

RIL is also looking to turn debt free in the next 18 months. As part of the debt-reduction plan, RIL looks to find global partners for its retail and telecom businesses. The company also plans to unlock value in real estate and financial investments.

“Saudi Aramco and Reliance have agreed to form a long-term partnership in our oil-to-chemicals (O2C) division. In terms of the understanding between the parties, Saudi Aramco will invest in Reliance for a 20 per cent stake at an enterprise value of $75 billion for the O2C division,” Mukesh Ambani (pictured), chairman and managing director (CMD), RIL, informed shareholders.