RIL Shares Gain Above Rs. 2200/ Share On Reports Of Progress In Saudi Aramco-RIL Deal

Reliance Industries shares in trade on August 16, 2021 surged 2.67% to day's high price of Rs. 2203 per share against previous day's closing price of Rs. 2145.65 on the NSE. The surge in the stock of oil to telecom conglomerate was propelled by Bloomberg report stating that Saudi Aramco is making a progress in the Saudi Aramco-RIL deal and is in advanced stages of talks for acquiring stake in the company's oil refining and chemical enterprise.

RIL Shares Gain Above Rs. 2200/ Share On Reports Of Progress In Saudi Aramco-RIL Deal

Saudi Aramco, officially called the Saudi Arabian Oil Company, a Saudi Arabian public petroleum and natural gas company is considering buying approximately 20% stake in Reliance's oil business for $20 bn-$25 bn in Aramco's shares. As per the report, the deal could materialize in the coming weeks. Further sources told Bloomberg, the terms of the potential deal are still being discussed upon, and talks could drag on longer or fall apart.

In its 44th AGM in June, the company said that it hopes to finalize its partnership agreement with Saudi Aramco by 2021 end. Also, the chairman of Saudi Aramco and the Governor of the Public Investment Fund, Yasir Al-Rumayyan was inducted into the board of RIL as an independent director.

RIL's Chairman and Managing Director Mukesh Ambani at the 44th AGM said that "as an important part of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner in our O2C business." Despite several challenges due to covid-19, "we have made substantial progress in the past year in our discussions", he added.

Importantly, in 2019, RIL announced its intent to sell 20% of the holding in the company's chemicals and refining unit to Saudi Aramco in a deal worth $15 bn. The deal which was to conclude in March 2020 got delayed and the talks in respect of the same were restarted this year.

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