Saudi Aramco, the world’s largest crude oil producer and refiner, is in serious discussions to acquire up to a 25 percent stake in Reliance Industries’ refining and petrochemicals businesses, as stated in local news report.
The agreement on valuation could be reached around June, the Indian newspaper reported, citing people with knowledge of the development. Goldman Sachs is said to have been mandated to advise on the proposed deal, the report added.
A minority stake sale could fetch around $10 billion to $15 billion, valuing the Indian company’s refining and petrochemicals businesses at around $55 billion to $60 billion, the report said.
Aramco’s interest in the operator of the world’s biggest refining complex comes after Saudi Arabia’s Crown Prince Mohammed bin Salman’s visit to Delhi in February when he said he expected investment opportunities worth more than $100 billion in India over the next two years.
Aramco recently sealed deals to acquire a 70% stake in Sabic for $69.1 billion and 17% stake for 1.25 billion in Hyundai Oilbank as part of its expansion of both upstream and downstream operations.
