World’s Most Profitable Company Saudi Aramco In ‘Serious Discussions’ To Acquire 25 Per Cent Stake In Reliance

One of the largest companies in the world by revenue Saudi Aramco is in “serious discussions” to acquire as much as 25 per cent stake in Mukesh Ambani-led Reliance’s refining and petrochemicals businesses, reports Times Of India (TOI).

Purchase of minority stake by energy major Aramco could bring in $10-15 billion, valuing Reliance Industries Limited’s (RIL) oil refining businesses at around $55-60 billion. As of Tuesday (16 April) evening, Reliance had a market capitalisation of a whopping $122 billion (or Rs 8.5 lakh crore).

An agreement on valuation is expected to be reached between the two companies around June this year. Investment bank Goldman Sachs is advising on the deal.

State-run Aramco, based out of Saudi Arabia is not only the world’s largest oil exporter but also the world’s most profitable company. The firm first showed its interest in purchasing a stake in Reliance about four months ago.

However, talks accelerated following the visit of Saudi crown prince Mohammed bin Salman (MBS) to India in February, during which he met Reliance chairman Mukesh Ambani.

Mega Refinery

Aramco along with a consortium of Indian oil companies is also planning to build a mega refinery in Maharashtra at an estimated cost of $44 billion. The refinery, which will be built about 350 km south of Mumbai, will be capable of processing around 1.2 million barrels of crude oil a day. Upon completion, it would be India's largest such project.

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