Aramco mulls cash, share-swap deal for stake in RIL’s energy ops: Report

MUMBAI: Saudi Aramco and are holding discussions over part cash and part share deal for the 20 per cent stake in the latter’s oil-to-chemical business, UK-based Financial Times reported today.

The Kingdom was weighing paying for the deal with Saudi Aramco’s shares at first and then staggered cash payments over several years, the report said citing three sources in the know of the development.

Aramco’s deal to acquire 20 per cent stake in RIL’s energy business was delayed due to the onset of the Covid-19 pandemic last year, which left the West Asian countries’ finances in a muddle due to rapid decline in global crude oil prices.

However, recent revival in the global oil market has strengthened Aramco’s positions and has led to speculation that the Kingdom may revive its interest in the deal as it hunts for assets in one of the world’s fastest-growing oil consuming markets.

Reliance has already set the stage for such a deal after it recently moved to demerge its oil-to-chemical business as a separate subsidiary in which Aramco is expected to pick up stake. Earlier this month, the demerger was approved by the shareholders of the company.

The deal, if completed, will act as a major trigger for RIL’s stock, analysts said. Shares of the company on Wednesday ended 0.2 per cent higher at Rs 1,993.15.