Saudi Arabian Oil Company is close to securing a deal to acquire a fifth of the oil refining and chemicals business of Reliance Industries Ltd., Bloomberg reported.

  • Saudi Aramco is in talks to acquire a 20% stake in the Reliance business for an estimated $20 billion to $25 billion shares of Aramco, according to sources close to the matter. The deal is expected to be made in a matter of weeks.
  • Reliance did not comment further than comments made by its backer, Indian billionaire Mukesh Ambani, who in June said the company could finalize an investment deal within the year.
  • Aramco will benefit from the deal through higher crude sales to India, while Reliance will gain oil supplies for its giant refineries, along with shares in the Saudi firm.
  • The transaction will also improve relations between Saudi, the biggest oil exporter across the globe, and India, one of the fastest-growing consumers. Trade between the two has continued to develop in the past years.

The deal would be Aramco’s first all-stock deal since its market debut in 2019. 2222 is down 0.99%, while RELIANCE is up 1.09%.