Reliance Industries : Saudi Aramco and Reliance Industries Sign a Non-Binding Letter of Intent to Acquire a 20% Stake in the Oil to Chemicals (O2C) Division of Reliance Industries Limited Valued at an Enterprise Value of US$ 75 Billion
August 12, 2019 at 04:46 am EDT
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SAUDI ARAMCO AND RELIANCE INDUSTRIES SIGN
A NON-BINDING LETTER OF INTENT TO ACQUIRE A 20% STAKE IN THE OIL TO CHEMICALS (O2C) DIVISION OF RELIANCE INDUSTRIES LIMITED VALUED AT AN ENTERPRISE VALUE OF US$ 75 BILLION
ONE OF THE LARGEST FOREIGN INVESTMENTS IN INDIA
Mumbai, August 12, 2019: Saudi Aramco and Reliance Industries Limited (RIL) today have agreed to a non-binding Letter of Intent ("LOI") regarding a proposed investment in the Oil to Chemicals (O2C) division comprising the Refining, Petrochemicals and fuels marketing businesses of RIL. Saudi Aramco's potential 20% stake is based upon an Enterprise Value of US$ 75 billion for the O2C division. This would be one of the largest foreign investments ever made in India.
Saudi Aramco and RIL have a long-standing crude oil supply relationship of over 25 years. Saudi Aramco is the world's largest and lowest cost-per-barrel producer of crude oil, is geographically close to India, and offers a wide range of crude supply options. To date it has supplied approximately 2 billion barrels of crude oil for processing at RIL's refinery at Jamnagar.
RIL's Jamnagar refinery is the largest and most complex refinery in the world, with deep integration of refining and petrochemical activities across multiple manufacturing facilities. The proposed investment would result in Saudi Aramco supplying 500 KBPD of Arabian crude oil to the Jamnagar refinery on a long term basis.
Mr. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited said "I am truly delighted to welcome Saudi Aramco, one of the largest business enterprises in the world, as a potential investor in our Oil to Chemicals division. We have a long-standingcrude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment. Saudi Aramco's interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India."
Under the non-binding LOI, the proposed investment is subject to due diligence, and the executed definitive agreement will be subject to regulatory and other customary approvals. The parties will make an announcement once a definitive agreement is executed.
Registered Office:
Corporate Communications
Telephone
: (+91 22) 2278 5000
Maker Chambers IV
Maker Chambers IV
Telefax
:
(+91 22) 2278 5185
3rd Floor, 222, Nariman Point
9th Floor, Nariman Point
Internet
:
www.ril.com
Mumbai 400 021, India
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
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About Reliance Industries Limited
RIL is India's largest private sector company, with a consolidated turnover of INR 622,809 crore ($90.1 billion), cash profit of INR 64,478 crore ($ 9.3 billion), and net profit of INR 39,588 crore ($5.7 billion) for the year ended March 31, 2019. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL is the top most ranked company from India to feature in Fortune's Global 500 list of 'World's Largest Corporations' - currently ranking 106th in terms of both revenues and profits. The company stands 71st in the 'Forbes Global 2000' rankings for 2019 - top-most among Indian companies. It ranks 10th among LinkedIn's 'The Best Companies to Work For In India' (2019).
Key Contact:
Tushar Pania
Reliance Industries Ltd.
91 9820088536 tushar.pania@ril.com
Registered Office:
Corporate Communications
Telephone
: (+91 22) 2278 5000
Maker Chambers IV
Maker Chambers IV
Telefax
:
(+91 22) 2278 5185
3rd Floor, 222, Nariman Point
9th Floor, Nariman Point
Internet
:
www.ril.com
Mumbai 400 021, India
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
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Reliance Industries Ltd. published this content on 12 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2019 08:45:08 UTC
Reliance Industries Ltd is a diversified group organized around 6 areas of activity:
- refining of petroleum products (58.4% of net sales): liquefied petroleum gas, propylene, naphtha, gasoline, kerosene, etc. At the end of March 2021, the group operated a refinery in India. The group also produces petrochemicals (polyethylene, polypropylene, polyvinyl chloride, polyester, purified terephthalic acid, paraxylene, ethylene, olefins, benzene, butadiene, acrylonitrile and caustic soda);
- distribution of consumer products (28.3%): distribution of food products, clothing and accessories, consumer electronics, etc. through a network of 12,711 stores in India;
- digital services (5.1%);
- exploration and production of crude oil and natural gas (0.3%);
- financial services (0.2%);
- other (7.7%): telecommunications and media services, textile manufacturing, etc.
India accounts for 61.5% of net sales.
Reliance Industries : Saudi Aramco and Reliance Industries Sign a Non-Binding Letter of Intent to Acquire a 20% Stake in the Oil to Chemicals (O2C) Division of Reliance Industries Limited Valued at an Enterprise Value of US$ 75 Billion