Saudi Aramco to acquire 20% stake in RIL

•	Saudi Aramco has agreed to buy 20% in the oil-to-chemicals division, the core business of Reliance Industries Limited (RIL).
• Saudi Aramco has agreed to buy 20% in the oil-to-chemicals division, the core business of Reliance Industries Limited (RIL).

MukeshAmbani, India's richest man and RIL's Chairman, announced a huge business deal yesterday,saying, while announcing the deal at the 42nd Annual General Meetingof the Company in Mumbai on Monday: "This signifies perfect synergy between theworld's largest oil producer and the world's largest integrated refinery andpetrochemicals complex".

Ambanisaid that Saudi Aramco is to acquire a 20% stake in RILs' oil-to-chemicalscompany, worth $75bn, according to Quartz India.

"Our transactions with Saudi Aramco and BP will create 'win-win'relationships, generating significant strategic value for our partners. Weexpect to complete these transactions within this financial year, subject todefinitive agreements, due diligence, regulatory and other customary approvals.The commitments from these two transactions are about ₹1.1 lakh crore," Ambanisaid.

"Thisprogram to aggressively pursue deleveraging in businesses such as OTC, fiberand tower, and emerge as a zero net-debt company in the next 18 months, willstrengthen the consolidated balance sheet, leading to strong valuationre-rating of the stock. RIL continues to remain as the pre-eminent play on theIndian economic juggernaut, that is likely to touch $10tn by 2030," Ambanisaid.

Ambaniadded: "Saudi Aramco will supply 500 thousand barrels of crude oil per day tothe refinery of the Panjman of RIL, after the acquisition of the 20% stake".

Ambanipointed out that the RILs' "Jamanjar" refinery in Gujarat has a capacity toprocess 1.4 million barrels per day and plans to expand its capacity to twomillion barrels per day by 2030.

Ambanialso confirmed that RIL is the only diversified Indian company with "threemajor growth engines in one corporate entity, the oil-to-chemicals division,the telecommunications company "Geo", and the retail business".

"Thefuture of India- as well as the future of RIL- has never looked as brighter asit seems to me now," Ambani said.

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