Mukesh Ambani backed RIL has made a U-turn in it's decision to hive off their oil-to-chemical (O2C) business and thus also cancelling it's plan to sell 20% to Saudi Arabia's Aramco in the company.
“RIL and Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” RIL said in a statement late night on Friday
What is the changed context?
India's largest private sector company by market capitalisation is making forays into new energy business in recent months by investing $10 billion in alternative energy over three years. This new focus is taking the investment context away from the traditional biz of oil-to-chemical.
So is the chapter with RIL-Aramco shut?
No, Reliance stated that the two will make "future disclosures as appropriate,” on partnerships. The negotiation between RIL and Saudi Aramco may now include the new clean initiatives announced by the Mukesh Ambani led-company.