Mukesh Ambani-led Reliance Industries Ltd (RIL) has decided with Saudi Aramco to re-evaluate the latter's proposal to acquire a stake in the Indian conglomerate.
The RIL said in a statement on Friday that it has withdrawn its application with the National Company Law Tribunal (NCLT) for segregating its oil-to-chemicals (O2C) business, after arriving at a mutual decision with Saudi Aramco to reassess the oil giant's proposed around $15 billion investment in RIL's O2C business.
The development came in view of Reliance's new energy business plans and the "evolving nature of its business portfolio", RIL said in a statement.
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"Due to [the] evolving nature of Reliance's business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context," read the press release.
In August 2019, RIL and Aramco signed a letter of intent for the oil giant to potentially acquire a 20% stake in the Indian conglomerate, but the deal was delayed as oil prices and demand crashed last year due to the pandemic.
Meanwhile, Reliance, earlier this year, said it would invest Rs 60,000 crore ($8.08 billion) to build four 'giga factories' at Jamnagar to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen.
The complex in western India accounts for a major part of the oil-to-chemicals assets.
The oil-to-telecoms conglomerate further stated in its statement that Jamnagar happens to be at the "centre" of its strategy to become a net carbon zero company.
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Reliance is also withdrawing its application filed with the National Company Law Tribunal for segregating the O2C business.
The company will continue to be Aramco's preferred partner for private sector investments in India and it will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia, Reliance added.
In October, Reliance said it had won shareholders' backing to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to its board.
(With inputs from Reuters.)