Bloomberg: Saudi Aramco In Talks To Acquire Stake In Oil Refining And Chemicals Unit Of Reliance
As per a report published in Bloomberg, Saudi Aramco is in advanced discussions to acquire a roughly 20 percent stake in Reliance Industries’ oil refining and chemicals business. Reliance is led by Indian billionaire Mukesh Ambani. The all-stock deal could be valued between $20 billion and $25 billion.
In 2019, the companies agreed for the acquisition of a 20 percent stake in oil-to-chemicals business of Reliance Industries. However, the $15 billion deal did not progress as per original timeline due to COVID-19 and unexpected circumstances in the energy market. This deal is anticipated to be completed in the current year. Yasir Al-Rumayyan, Chairman of Saudi Aramco’s Board, will join the Board of Reliance.
Saudi Aramco is engaged in prospecting, exploring, drilling, extracting, processing, manufacturing, refining and marketing hydrocarbon substances within the Kingdom and has interests in refining, petrochemical, distribution, marketing and storage facilities outside the Kingdom.
Saudi Aramco currently has two reportable segments, Upstream and Downstream. Upstream
activities include crude oil, natural gas and natural gas liquids exploration, field development and production. On June 16, 2020, the company acquired a 70% equity interest in SABIC from the Public Investment Fund. Downstream activities now include SABIC’s operations from the date of acquisition, and consist primarily of refining and petrochemical manufacturing, supply and trading, distribution and power generation, logistics, and marketing of crude oil and related services to international and domestic customers.
Source: Read Full Article