Saudi Aramco holds talks to acquire 20% stake in Reliance refinery: report

Logo of Saudi Aramco

Saudi Arabian Oil Co. (Saudi Aramco) and India’s Reliance Industries (RIL) are holding discussions over part cash and part share deal for the 20% stake in the latter’s oil refining and petrochemical arm, Financial Times reported, citing sources.

The deal was delayed due to the onset of the COVID-19 pandemic last year, but negotiations have resumed in recent weeks.

Aramco is weighing paying for the stake with its shares initially and then staggered cash payments over several years, the report said adding the proportion of shares versus cash was still up for debate and terms had yet to be finalized.

In October, a senior executive at Saudi Aramco said that the company may finalize the acquisition of a stake in RIL’s oil-to-chemicals business by 2021.

In August, another Aramco executive said it had signed an agreement to acquire a stake in RIL’s refining and petrochemicals business.