Aramco Seeks Shares in Reliance
The Saudi oil giant and world most profitable company- Aramco seeks to buy 25% shares in Reliance petrochemicals arena.
There has been a long going discussion between Aramco, the world's most profitable company in history, and Reliance Industries Limited- India’s largest company.
Aramco is a company based in Saudi Arabia, and is the largest exporter of oil. Recently, it has showed its interest in buying 25% of shares in Reliance Petrochemicals.
It initially showed interest about four months ago, but the process gained impetus after the visit of Saudi Crown Prince Mohammed bin Salman visited India in February, where he met the Reliance Chairman, and India’s richest man Mukesh Ambani.
They might reach a decision by July, this year. This deal will make a $10-15 billion dollar profit to Reliance.
Goldman Sachs is a financial management firm which is supposedly appointed to give its advice on this deal.
Reliance is believed to have grown very big, and hence it is necessary to divide the work into compartments.
After the Saudi oil Minister Khalid al Falih, attended Mukesh Ambani’s daughtes’ wedding in Udaipur, he publicly signalled that Aramco was interested in buying shares in Reliance Industries Limited.
Currently being the world's 3rd largest consumer of crude oil, India’s use of crude oil is expected to double to over 10 million barrels per day, by 2040.
A spokesperson of the Reliance Industries Limited, said that they do not comment on media rumours and speculation, and that they constantly evaluate opportunities on an ongoing basis.
A Saudi Aramco spokesperson said that he would respond at the earliest, but that not gotten back to the Times of India.
Saudi Crown Prince Mohammed bin Salman wants Saudi to reduce domestic oil money within Saudi, and look for meaningful overseas exchanges in petrochemical businesses.
Earlier this month, Aramco reported a profit of $111 billion on revenues of $360 billion in 2018, taking the title away from Apple Inc. as being the world's most profitable company.
On its initial investment of $100 billion in an overseas Initial Public Offering about 18 months ago, they aimed for a profit of $2 trillion, but later on they cancelled their plans
