Reliance Industries has shelved a proposed $15 billion deal to offload a 20 per cent stake in its oil refinery and petrochemical business to Saudi Aramco, the company said.
The stake sale is being pulled as Reliance is making huge strides in its new energy business. The Indian conglomerate has vowed to invest $10 billion in alternative energy over the next three years.
This year, Reliance bought NexWafe GmbH, a German maker of photovoltaic solar wafers, and has signed a deal with Danish firm Stiesdal to make hydrogen electrolysers in India.
“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 oil-to-chemical (O2C) business in light of the changed context,” Reliance said in a statement.
“Over the past two years, both teams made significant efforts in the process of due diligence, despite Covid restrictions. This has been possible due to the mutual respect and long-standing relationship between the two organisations,” the statement said.
The company said it will continue to be Saudi Aramco’s preferred partner for investments in the private sector in India, and will collaborate with Aramco and SABIC for investments in Saudi Arabia.
- Kevin Hamlin
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