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Aramco-Reliance ends $15 billion deal as priorities shift
India’s Reliance Industries and Saudi Aramco, a Saudi Arabian public petroleum and natural gas company based in Dhahran, have called off the investment deal as companies shift their priorities
Reliance had struck a deal in 2019 to sell 20% of its oil-to-chemical business to Aramco.
The stake valued at $15 billion, was to be one of the largest investments by a foreign company in India. However, the deal has come to an end as companies shift priorities.
In a statement issued on November 19, Reliance attributed the change to the “evolving nature of Reliance’s business portfolio”.
Chairman Mukesh Ambani said the company would invest $10 billion over three years to build four factories to manufacture solar photovoltaic modules, batteries, fuel cells, and electrolyzers, for the production of hydrogen.
The Government of India is offering the private sector big subsidies to produce solar energy. The company also has been buying up green energy companies, including a Norwegian solar panel maker it purchased for $771 million.
On the other hand, Aramco had its climate agenda, which includes being operationally carbon neutral by 2050.
Reliance said Aramco will continue to be a preferred partner for investments in India and will work with it and SABIC for investments in the Kingdom.
In the statement, Reliance said that the companies are parting on good terms and that they had a very deep, strong, and mutually beneficial relationship.
“The deep engagement over the last two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation,” it said.
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