Rating agency Moody’s has said that Saudi Aramco’s decision to reconsider the purchase of 20 per cent stake in Reliance Industries Limited’s oil-to-chemical (O2C) business will not affect the company’s credit quality. . Moody’s Investors Services said in a statement on Tuesday that the stake sale to Saudi Aramco would have further strengthened Reliance’s balance sheet and cash position. However, the decision to reconsider this deal will not affect the credit quality of Reliance Industries.
Reliance hopes Aramco will remain strategic partner
Moody’s has said that the decision to review Reliance’s business restructuring will give an opportunity to take stock of the relationship and coordination between its oil and chemical business. “This will be critical to the company’s plan to achieve its carbon neutrality target by 2035,” it said. In addition, Reliance expects Saudi Aramco to continue to be a strategic partner for its existing business.
A few days ago, Reliance Industries issued a statement saying that it and Saudi Aramco have decided to cancel their deal and re-evaluate it. Aramco was to buy a 20 percent stake in Reliance’s Oil to Chemical (O2C) business, but both decided to cancel the deal in the changing environment.
Reliance had issued a statement late last Friday saying that the application filed by it in the NCLT to separate its oil to chemical business from the group’s other business has been withdrawn. The emerging nature has been taken. In fact, in view of the changing energy scenario, Reliance and Aramco have decided to cancel this deal.
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Of Aram 1.11 Had to buy in lakh crores 20 percentage share
Reliance signed a letter of intent (LOI) in 2019. Under this, Aramco was to buy a 20 percent stake in Reliance’s oil to chemical business. Its total value was more than Rs 1.11 lakh crore. According to Reliance Industries, both the companies had done a lot of work in the last two years to move forward in this direction. Saudi Aramco had also done a lot of work to pursue this deal to buy a stake. Meanwhile, Reliance appointed Aramco chairman Yasser Ottman H. Al-Rumayan as independent director.
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