In the ICIS news article 'Saudi Aramco to pay $75bn for 20% Reliance oil to chems business stake' dated 12 August 2019, the headline and introduction incorrectly stated that Saudi Aramco was to pay $75bn for its stake in Reliance. The $75bn figure represents the enterprise value (EV) of the 20% stake to be acquired. A corrected news article follows.
LONDON (ICIS)--Saudi Aramco is set to acquire a 20% stake in Reliance Industries’ oil to chemicals division, representing an enterprise value (EV) of $75bn, the Indian petrochemicals major said on Monday.
The two companies have signed a non-binding letter of intent (LoI) that proposes that the key pillar company of the Saudi economy would acquire a significant stake in Reliance’s refining, petrochemicals and fuels marketing businesses.
Under the terms of the proposed investment, Aramco would also supply 500,000 bbl/day of crude oil to Reliance’s Jamnagar, India, refinery, on a long-term basis.
“We have a long-standing crude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment,” said Reliance chairman Mukesh Ambani.
The investment would be one of the largest ever made by a foreign entity in India, Reliance said.