Reliance Industries Ltd has said it is withdrawing its claim before the National Company Law Tribunal (NCLT) for segregation of its petroleum-chemicals (O2C) business following its foray into the new energy sector in recent years. month.
In a statement released on Friday, the Indian company also announced that it was renewing its proposed $ 15 billion deal to sell 20% stake in its oil refinery and petrochemical business to Saudi Aramco. The two companies have agreed to reassess the proposed investment following Reliance’s entry into the new energy sector.
Share sale talks, which were officially revealed for the first time in August 2019, are being reset in light of Reliance’s forays into new energy businesses in recent months by investing $ 10 billion in power plants. alternative energies over three years. To switch to green energy, it has already bought a German manufacturer of photovoltaic solar panels and signed an agreement with a Danish company to manufacture hydrogen electrolyzers in India.
“Due to the evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to reassess the proposed investment in O2C business in light of the changed environment,” said Reliance said in a statement.
In a press release issued on Friday, the company said it signed a “non-binding letter of intent in August 2019 for a potential acquisition of 20% by Saudi Aramco in Reliance’s O2C business.”
“Over the past two years, both teams have made significant efforts in the due diligence process, despite Covid restrictions. This was made possible by mutual respect and the long-standing relationship between the two organizations, ”the press release read.
Reliance recently unveiled its plans for new energy and materials business by announcing the development of the Giga Dhirubhai Ambani Green Energy complex in Jamnagar. It will be one of the largest integrated renewable energy manufacturing facilities in the world, the company said.
The complex will include an integrated photovoltaic solar module plant for solar power generation, an advanced energy storage battery plant for intermittent energy storage, an electrolyzer plant for the production of green hydrogen and a fuel cell plant to convert hydrogen into motive and stationary energy. in Jamnagar. This represents a significant portion of O2C assets and is expected to be the focus of Reliance’s new business in renewable energy and new materials.
Referring to the withdrawal of the NCLT application, Reliance assured that its relationship with Saudi Aramco was “deep and mutually beneficial”, and that the two companies “are deeply committed to creating a win-win partnership”.
“RIL will continue to be Saudi Aramco’s preferred partner for private sector investments in India and will work with Saudi Aramco and SABIC for investments in Saudi Arabia. Saudi Aramco and RIL have a very deep, strong and mutually beneficial relationship, which has been developed and nurtured by both companies over the past 25 years. The two companies are committed to collaborating and working to strengthen the relationship in the years to come, ”said Reliance.
(With PTI inputs)
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