Sources close to the matter say Reliance Industries and Saudi Aramco have called off a deal for the state oil giant to buy a stake in the oil-to-chemicals business of the Indian conglomerate due to valuation concerns. Aramco signed a non-binding agreement to buy a 20% stake in Reliance’s O2C business for $15 billion in 2019. Talks broke down over how much Reliance’s oil-to-chemicals (O2C) business should be valued as the world seeks to move away from fossil fuels and reduce emissions. Reliance will instead focus on signing multiple deals with companies to produce specialty chemicals for higher margins. The collapse of the deal reflects the changing global energy landscape as oil and gas companies shift away from fossil fuel to renewables.
- Reliance, Aramco call off $15 bln deal amid valuation differences, sources say