• Friday, September 17, 2021
India corona update 
Total Fatalities 251,323
Total Cases 23,126,534
Today's Fatalities 3,879
Today's Cases 329,517
India corona update 
Total Fatalities 251,323
Total Cases 23,126,534
Today's Fatalities 3,879
Today's Cases 329,517

Business

Aramco, Reliance in advanced talks over £18bn deal

Chairman and Managing Director of Reliance Industries Mukesh Ambani. (Photo by INDRANIL MUKHERJEE/AFP via Getty Images)

By: Shilpa Sharma

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.

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