Saudi Aramco is in advanced talks over a deal worth up to $25 billion with India's Reliance Industries, according to Bloomberg.
According to Arab Net, Aramco is discussing acquiring a 20% stake in Reliance in a stock swap deal worth between $20 billion and $25 billion of Aramco shares. , according to Bloomberg, citing sources who requested anonymity.
The sources indicated that the Indian company may reach an agreement with Aramco in the coming weeks.
As a result of this agreement, the shares of Reliance on the Mumbai Stock Exchange rose by 2.6%, while Aramco shares in the Saudi Stock Exchange led the market activities.
The deal will help Reliance secure a steady supply of crude oil for its giant refineries and make the Indian company a shareholder in Aramco.
Based on Aramco's $1.9 trillion market valuation, the deal would give Reliance a roughly 1% stake in the world's largest energy company.
The CEO of Saudi Aramco, Amin Nasser, said earlier this month that due diligence with Reliance is still continuing after it was disrupted due to the pandemic. He added, "We are still reviewing opportunities in India, especially with Reliance."
In June, Reliance said it hoped to formalize its partnership with Saudi Aramco this year and announced the inclusion of Aramco Chairman Yasser Al-Rumayyan on the company's board of directors. Indian Giant as independent director. Chairman Mukesh Ambani explained to shareholders that Al-Rumayyan joining our board of directors is also the beginning of turning Reliance into an international company.
Reliance announced the sale of a 20% stake in its oil-to-chemicals business for $15 billion in 2019 to Aramco, the world's largest oil exporter. But the deal was halted after the collapse in oil prices and demand last year due to the pandemic.
The president of Reliance Company expected an acceleration of the partnership with Aramco, and the completion of Aramco's purchase of a stake in one of Reliance units this year.
