InvestorQ : What is the progress on the Reliance – Saudi Aramco deal?
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What is the progress on the Reliance – Saudi Aramco deal?

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Dilmini Mercia answered.
4 months ago
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Saudi Aramco is apparently in an advanced stage of talks for an all-stock deal to buy a stake in the O2C or the oil to chemicals business of Reliance Industries. While final numbers are not yet known, it is reported that Aramco could be looking at a 20% stake at a ballpark valuation of $20 billion to $25 billion. However, this is likely to be an all-stock deal in which the Reliance shareholders will get Aramco shares in return for the 20% stake in O2C.

The finer details of the structure are yet to be worked out. It is expected that the final deal may be signed within the next few weeks. The deal would be a one of its kind in the sense that it virtually marks an alliance between the world’s biggest oil exporter and one of the major and fastest growing consumers of crude oil, which is Reliance Industries. Crude prices are up 35% this year at $70/bbl and the timing looks right for the deal to get through.

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