Cancellation of Aramco acquisition of 20% Reliance subsidiary, Oil Giant confirms search for opportunities in India

Saudi Aramco expressed its intention to continue searching for investment opportunities in India with its potential partners, including Reliance Industries, due to the promising long-term opportunities that the country provides.

Reliance Industries announcement came after the India’s largest private sector company agred with Aramco to cancel the non-binding agreement signed in August 2019, which required Aramco to acquire 20% of its subsidiary’s oil-to-chemicals business in a deal worth $15 billion, according to Al Arabiya Net.

The decision follows Reliance’s recent consolidation of its plans to develop mega green energy projects at a complex in Jamnagar that will become one of the world’s largest integrated renewable energy manufacturing facilities.

Reliance Industries Ltd., led by billionaire Mukesh Ambani, had previously announced that it would, with Aramco, re-evaluate the proposed investment by Aramco in the oil and chemical business.

In August 2019, Reliance and Aramco signed a memorandum of understanding regarding Aramco’s acquisition of a 20% stake in the company led by Ambani, for $15 billion.

The revision of the plans comes on the back of Reliance’s investment in the new energy business in recent months by investing $10 billion in alternative energy over three years.

“Reliance shall continue to be Saudi Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco & SABIC for investments in Saudi Arabia,” the statement said.