Saudi Aramco chairman and Governor of the Kingdom’s Public Investment Fund, Yasir Al-Rumayyan, has been inducted into the board of Reliance Industries Ltd as an Independent Director, a precursor to a USD 15 billion deal, the Economic Times (ET) reported in India.
“I welcome H.E. Yasir Al-Rumayyan, Chairman of Saudi Aramco and Governor of PIF, to join the Board of Reliance Industries as Independent Director. His joining our Board is the beginning of the internationalization of Reliance,” Reliance chairman Mukesh Ambani said.
“Continued engagement and resolve from both sides, even during this pandemic, is a testimony of strong relationship between Saudi Aramco and Reliance. I expect our partnership to be formalized in an expeditious manner this year,” Ambani added.
Al-Rumayyan is at the center of Saudi Arabia’s plans to transform the economy by creating new sectors and diversifying revenues away from oil.
Reliance had in August 2019 announced talks for the sale of a 20% stake in the O2C business, which comprises its twin oil refineries at Jamnagar in Gujarat and petrochemical assets, to the world’s largest oil exporter.
“The deal was to conclude by March 2020 but has been delayed for reasons not disclosed by either company,” the IT reported..
Talks have revived this year and the two companies are reportedly discussing a cash and share deal – Aramco paying for the stake with its shares initially and then staggered cash payments over several years.
Reliance Industries is an Indian multinational conglomerate, headquartered in Mumbai. It owns businesses across India and is engaged in energy, petrochemicals, natural resources, retail, telecommunications, and textiles
Of the 14 members on the RIL board, half are independent directors.