Thursday, 25 November 2021

Reliance, Aramco call off $15 bln deal amid valuation differences, sources say | Reuters

Reliance, Aramco call off $15 bln deal amid valuation differences, sources say | Reuters

Reliance Industries (RELI.NS) and Saudi Aramco (2222.SE) have called off a deal for the state oil giant to buy a stake in the oil-to-chemicals business of the Indian conglomerate due to valuation concerns, sources with knowledge of the matter said.

Talks broke down over how much Reliance's oil-to-chemicals (O2C) business should be valued as the world seeks to move away from fossil fuels and reduce emissions, they said.

Instead, Reliance will now focus on signing multiple deals with companies to produce specialty chemicals for higher margins, one of the sources said.

Aramco, the world's top oil exporter, signed a non-binding agreement to buy a 20% stake in Reliance's O2C business for $15 billion in 2019. Last week, the companies announced they would re-evaluate the deal, ending two years of negotiations. read more

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