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Deal stalls as Aramco seeks 20% cut in Reliance's O2C business valuation

Ambani at Reliance's annual general meeting on Wednesday said the Aramco deal was delayed due to "unforeseen circumstances in the energy market and the Covid-19 situation"

saudi aramco, Oil, crude, petrol
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Aramco felt the business would need substantial investment to convert oil to valuable chemicals and not produce substantial quantities of petrol, diesel, and ATF as Jamnagar refineries currently do

Press Trust of India New Delhi
Reliance Industries' planned sale of a fifth of its oil-to-chemical business to Aramco has stalled after the Saudi company sought at least 20 per cent cut in $75 billion valuation billionaire Mukesh Ambani's firm was seeking.

Sources privy to negotiations said Saudi Aramco had right from the beginning resisted the $15 billion price tag Reliance had put for the 20 per cent stake in O2C business, which comprises of the company's twin refineries at Jamnagar in Gujarat, petrochemical plants and 51 per cent in fuel retailing venture.

And with crude oil prices plunging due to the pandemic, it sought a

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First Published: Jul 16 2020 | 6:49 PM IST

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