Reliance Industries (RIL) said that the application with NCLT for segregating the oil-to-chemical (O2C) business is being withdrawn.
RIL and Saudi Aramco on Friday (19 November 2021) decided to re-evaluate the proposed Investment by Aramco in the oil-to-chemical (O2C) business in light of the RIL's new energy forays.Hence, the current application with National Company Law Tribunal (NCLT) for segregating the O2C business from RIL is being withdrawn, RIL said in a statement.
"Due to evolving nature of Reliance's business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context," it added.
The engagement over the last two years has given both RIL and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation. Saudi Aramco and RIL are deeply committed to creating a win-win partnership and will make future disclosures as appropriate.
RIL said it will continue to be Saudi Aramco's preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco & SABIC for investments in Saudi Arabia. Both companies are committed to collaborate and work towards strengthening the relationship further in the years ahead, RIL said.
RIL and Saudi Aramco signed a non-binding Letter of Intent in August 2019 for a potential 20% stake acquisition by Saudi Aramco in the O2C Business of Reliance. Over the past two years, both the teams made significant efforts in the process of due diligence.
RIL recently unveiled its plans for the new energy & materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar.
Jamnagar, which accounts for a major part of the O2C assets, is envisaged to be the centre for RIL's new businesses of renewable energy & new materials, supporting the net-zero commitment.
On a consolidated basis, RIL reported 46% increase in net profit to Rs 15,479 crore on 50.7% rise in net sales to Rs 1,67,611 crore in Q2 September 2021 over Q2 September 2020.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
Shares of RIL rose 0.35% to settle at Rs 2472.75 on Thursday. The domestic stock market was shut on Friday on account of Guru Nanak Jayanti.
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