Mukesh Ambani, Chairman & Managing Director at Reliance Industries, on Thursday said RIL’s proposed deal with Saudi Aramco will likely be finalised this financial year.
Ambani, who was speaking at the company’s 44th Annual General Meeting (AGM), said Yasir Al-Rumayyan would join the company board as an independent director. Al-Rumayyan is the chairman and governor of the Kingdom’s wealth fund Public Investment Fund.
“Delighted to welcome Saudi Aramco Chairman on Reliance Industries Board,” Mukesh Ambani said at the 44th Annual General Meeting of Reliance Industries.
“He [Yasir Al Rumayyan] is one of the most renowned names in energy finance and technology globally. I am sure that we will immensely benefit from his rich experience with one of the world’s largest companies, and also one of the largest Sovereign Wealth Funds in the world,” Ambani said.
During the RIL AGM in 2019, Ambani announced talks for the sale of a 20% stake in the oil-to-chemicals (O2C) business for $15 billion which comprises its twin oil refineries at Jamnagar in Gujart and petrochemical assets to Aramco.
However, the deal did not go through after demand and prices crashed in 2020 due to the pandemic. O2C is a very important business for the Indian conglomerate and it contributed about 60% of RIL’s revenue in the year-ended March.
“Talks have revived this year and the two are reportedly discussing a cash and share deal, with Aramco paying for the stake with its shares initially and then staggered cash payments over several years,” The Times of India reported on Thursday.
According to financial daily Business Standard, Mukesh Ambani expects to seal the RIL-Aramco deal this year.
“Our O2C business faced unprecedented challenges by severe economic contraction at the beginning of the year. Yet we were probably the only company globally that operated at near full capacity and was profitable in every quarter,” Ambani said.
“Continued engagement and resolve from both sides, even during this pandemic, is a testimony of strong relationship between Saudi Aramco and Reliance. I expect our partnership to be formalised in an expeditious manner this year,” he added.