InvestorQ : What is the update on the deal between Reliance Industries and Saudi Aramco? Are they going ahead with the stake sale?
Arusha Ray made post

What is the update on the deal between Reliance Industries and Saudi Aramco? Are they going ahead with the stake sale?

Answer
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Moii Chavate answered.
3 months ago


The deal has been on the backburner but the agreement is still own. That was confirmed by Mr. Mukesh Ambani himself. Ambani confirmed that RIL was working closely with Saudi Aramco to finalize the finer points of the stake sale. Late in 2019, Reliance had signed a deal with Aramco to sell a 20% stake in its refining and petchem business for $15 billion.

The deal would have valued Reliance Industries core refining and petchem business at $75 billion. However, the deal approval got stuck with the government due to outstanding dues payable by Reliance on the gas finds in the KG Basin. Initially, it was the Aramco deal that was designed to help RIL become zero net-debt.

Post the agreement, oil prices crashed due to weak demand and a shortage of storage space. Now, the deal is likely to be revived but valuations are under question. It is possible that RIL and Aramco may agree to a lower valuation for the refining and petchem business due to lower crude prices or they may even agree to a smaller stake sale than 20%.