Saudi Aramco in talks for 25 per cent of Reliance's refining, petrochemical units: Report.

In what is shaping up into a mega-deal between two corporate behemoths, Saudi Aramco, the world's most profitable company in history, is learned to be in "serious discussions" to acquire up to 25% in the refining and petrochemicals businesses of Reliance Industries Ltd., India's largest company. 

While Saudi Aramco, which is also the world's largest oil exporter, is known to have first shown interest in Reliance about four months ago, talks gathered momentum following the visit of Saudi crown prince Mohammed bin Salman (MBS) to India in February, during which he met RIL chairman and India's richest man, Mukesh Ambani. 

There might be an agreement on valuation around June this year, people with knowledge of the development said. A minority stake sale could fetch around $10-15 billion, valuing RIL's refining and petrochemicals businesses at around $55-60 billion. At Tuesday's share price, RIL has a market capitalisation topping $122 billion (or Rs. 8.5 lakh crore). 

Goldman Sachs, the storied investment banker, is said to have been mandated to advise on the proposed deal. "RIL has grown too big - from energy to retail to telecom. It needs to compartmentalise. It makes sense to spin off some of its verticals. It'll help raise funds and unlock shareholder value," said a highly placed person in the financial sector who didn't wish to be quoted since he didn't have direct knowledge of the matter. 

RIL has financed Reliance Jio's high-voltage entry into telecom even as gross debt soared to about Rs 3 lakh crore. Deleveraging would also allow Jio to pursue its aggressive expansion plans, according to corporate finance specialists. "It's sensible market policy," said one of them. TOI has in the past reported about share sale plans in telecom infra and retail. "But Jio is still some way away from being spun off, it'll take more time," said a source. 

RIL may create standalone vertical for downstream biz 

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