InvestorQ : What is the outlook for Reliance Group’s debt reduction now that BP’s investment in RIL’s fuel business is finally cleared?
indhumathi Sayani made post

What is the outlook for Reliance Group’s debt reduction now that BP’s investment in RIL’s fuel business is finally cleared?

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shrinidhi Rajan answered.
2 years ago
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Competition Commission of India (CCI) cleared British Petroleum’s 49% investment in the fuel retailing business of Reliance Industries. This deal was announced earlier this year and is part of the asset monetization plans of RIL towards reducing the quantum of debt. The deal entails the transfer of RIL’s petroleum retail business and certain aviation assets at airports to a new company called Reliance BP Mobility Ltd. (RBPML), in which BP Global will invest 49%. The $1 billion deal was announced in August 2019 but was pending approvals. Since BP does not have any competing business in India, CCI has not suggested any modifications to the deal. Traditionally, in India auto fuel retailing is low-margin but big volume business. Consequently, fuel retailers create additional revenue streams by offering value added services such as shopping facilities at filling stations, lubricants etc.

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