Advertisement
Thursday, Aug 11, 2022
Outlook.com
Outlook.com

Reliance Industries To Re-Evaluate Stake Sale To Saudi Aramco

Reliance Industries said the decision was in light of their ambition to foray into renewable energy and the evolving nature of company's business portfolio.

Reliance Industries To Re-Evaluate Stake Sale To Saudi Aramco
Reliance Industries To Re-Evaluate Stake Sale To Saudi Aramco
outlookindia.com
2021-11-20T13:55:07+05:30

Mukesh Ambani-led Reliance Industries on Friday said the company would re-evaluate its 20 per cent stake sale of its oil-to-chemical business to Saudi Aramco. The company informed that the decision was mutual and in light of the company's foray into renewable energy and the evolving nature of the company's business portfolio. Reliance Industries added that its application to the National Company Law Tribunal for segregating the oil-to-chemical business would be subsequently withdrawn.

"Reliance recently unveiled its plans for the New Energy & Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It will be amongst the largest integrated renewable energy manufacturing facilities in the world," the company stated. 

The $15 billion stake sale was announced in August 2019. The deal was to be completed by March last year, however, it got delayed. 

The Indian conglomerate stated that it would continue being Saudi Aramco's preferred partner for private sector investments in India. Also, Reliance Industries would continue collaborating with Saudi Aramco and Saudi Basic Industries Corporation for investments in Saudi Arabia.

Reliance added that the proposal could be put to reconsideration because of the mutual respect and long-standing relationship between the two organisations. 

In October, Reliance Industries had received shareholder approval to appoint Saudi Aramco Chairman Yasir Al-Rumayyan on the company's board. Shareholder California State Teachers' Retirement System (CALSTRS) had opposed the move owing to a conflict of interest position pertaining to the Saudi Aramco chairman's position in his home country's Public Investment Fund (PIF) as governor. 

However, the proposal for the appointment was cleared with less than 2 per cent opposition. 

Earlier in the month, the conglomerate clarified to its shareholders that the Saudi Chairman's appointment had nothing to do with the company's stake sale to Saudi Aramco. 

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

In happy times and sad, Habba Khatun’s sensuous songs make both young and old emotional. With the never-ending conflict bringing tragedies to every doorstep, Habba’s lyrics of separation amplify their mourning.

How Indian Laws Govern People’s Right To Love And Live

How Indian Laws Govern People’s Right To Love And Live

In India, only those relationships between a man and a woman are considered to be legitimate when there is a marriage between the two.

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Virat Kohli, 33, had recently stepped down as India's T20I captain and was subsequently removed as the ODI captain.

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

A Mahila Congress leader, who is the face of the ‘Ladki Hoon, Lad Sakti Hoon’ campaign, however, has accused the party of anti-women bias after she was denied a ticket.

Advertisement