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Reliance and Saudi Aramco deal scrapped
November 2021

Reliance and Saudi Aramco deal scrapped

Reliance Industries’ shares drop on the back of news that the US$15 billion deal with Saudi Aramco has been called off. Reliance Industries and Saudi Aramco had signed a “non-binding letter of intent” in 2019, for Saudi Aramco to purchase 20% of Reliance’s refinery business at a valuation of US$75 billion. However, talks between the two parties stalled because of the coronavirus pandemic and the uncertainty it created in the energy markets. This uncertainty and turbulence in the energy markets negatively affected Saudi Aramco’s finances and further exacerbated the already existing reservations in respect of the high valuation of the deal. The shares of Reliance Industries on Monday, 22 November 2021 fall by more than 4% in Mumbai.