Saudi Aramco is conducting advanced talks on a deal to acquire a stake in Reliance Industries Limited’s oil refining and chemicals business, and an agreement could be reached in the coming weeks. Following this news, shares of the Indian Businessman Mokish Ambani owned Reliance Industries (RIL) surged more than 2.6%.
The Middle Eastern energy firm is discussing the purchase of nearly 20% stake in the Indian company in a swap share for about $20 billion to $25 billion in Aramco’s shares.
The deal would formulate closer relations between the world's largest oil exporter and one of the fastest growing energy consumers.
It would seal more than two years of negotiations and mark Aramco’s first all-stock deal since its initial public offering in 2019. Ambani confirmed talks about a deal with an implied stake valuation of $15 billion that same year. Discussions were delayed by the onset of the coronavirus pandemic and slump in oil prices.
Since then, energy markets have begun to recover, with crude oil prices jumping about 35% this year to nearly $70 a barrel.