Reliance Industries Ltd (RIL), which is controlled by billionaire Mukesh Ambani, announced on Friday that the firm and Saudi Aramco had mutually resolved to re-evaluate the proposed investment in the O2C (Oil to Chemical) sector.
As a result, the oil to telecom conglomerate’s present appeal with the National Company Law Tribunal (NCLT) to separate the O2C company from RIL has been dropped, according to a statement.
“Due to evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context. Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn,” said RIL in the official statement said.
RIL will continue to be Saudi Aramco’s preferred partner for private sector projects in India, and will engage with Saudi Aramco and SABIC for investments in Saudi Arabia, according to the statement.
In August 2019, Reliance Industries and Saudi Aramco signed a non-binding Letter of Intent for Saudi Aramco to buy a 20% share in Reliance’s O2C business.
