SAUDI ARAMCO is in advanced talks with Reliance Industries Ltd for an all-stock deal to acquire a stake in the Indian conglomerate’s oil refining and chemicals business, news agency Bloomberg reported.
The Saudi Arabian oil giant is discussing the purchase of a roughly 20 per cent stake in the Reliance unit for about $20 billion (£14bn) to $25bn (£18bn)-worth of Aramco shares. The deal would facilitate closer ties between the world’s biggest oil exporter and one of the fastest-growing energy consumers.
The two companies are expected to reach an agreement in the coming weeks, the Bloomberg’s report said quoting sources.
It would also mark Aramco’s first all-stock deal since its initial public offering in 2019.
Mukesh Ambani, chairman and managing director of Reliance Industries had confirmed talks about a deal with an implied stake valuation of $15bn (£10.8bn) in 2019. However, discussions got delayed due to the coronavirus pandemic.
The deal would boost Aramco’s sales of crude to India, and for Reliance it would ensure a steady supply of crude oil for its giant refineries and make the Indian conglomerate a shareholder in Aramco.
Based on Aramco’s market valuation of about $1.9 trillion (£1.4tn), the deal would give Reliance a stake of around one per cent.
Details of the transaction are still being negotiated, the report said.
