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business | IST

Reliance Industries, Saudi Aramco to re-evaluate O2C investment proposals: A timeline of events and other major deals

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Reliance Industries Ltd (RIL) said it is withdrawing its application to get necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit due to the evolving nature of its business portfolio.

Reliance Industries Ltd (RIL) said it is withdrawing its application to get necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit due to the evolving nature of its business portfolio. The current application with NCLT for segregating the O2C business from RIL is being withdrawn, the company said in an exchange filing on Friday.
The RIL move comes months after the 44th AGM of the conglomerate in June where chairman Mukesh Ambani announced a foray into clean energy with a massive Rs 75,000 crore push spread over three years to build four factories to manufacture solar photovoltaic modules, fuel cells, batteries and electrolysers, for the production of hydrogen. 
RIL's new energy arm, Reliance New Energy Solar announced in mid-October that it has acquired Norway-based REC Solar Holdings for $771 million and also picked a 40 percent stake in EPC player Sterling and Wilson Solar via a combination of primary investment, secondary share purchases and an open offer of Rs 2,850 crore.
As announced by Ambani at the 44th AGM, the conglomerate is pushing its Rs 75,000 crore clean energy plan with several acquisitions in the space. Meanwhile, the globe consumed 98.9 million barrels per day (bpd) of crude oil in October 2021 as per an EIA short-term energy outlook note, indicating oil demand is nearing its pre-COVID levels of around 100 million bpd, as economies bounced back from the pandemic impact pushing Brent crude oil prices jumped almost 60 percent this year.
Moreover, RIL's technology arm Jio Platforms has raised investments worth Rs 1,52,056 crore in the company’s technology arm Jio Platforms since its launch from companies such as Google, Facebook, Intel, Qualcomm, PIF, Silver Lake, L Catterton, among others. Investments have come into retail arm Reliance Retail Ventures as well.
Riding on the successful business strategy, RIL's market capitalisation had hit Rs 18 lakh crore in early October this year, jumping from Rs 5 lakh crore in July 2017. It is the first company in the country to touch this level.
Here’s a timeline of RIL’s major deals and acquisitions:
November 19, 2021: RIL, Saudi Aramco to re-evaluate investment deal with the Kingdom's firm in Oil-to-Chemcials (O2C) business. RIL to withdraw its application with NCLT for segregating the O2C business.
September 2021: Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of RIL, to acquire 2.28 crore equity shares of Strand Life Sciences Pvt. Ltd for a cash consideration of Rs 393 crore. RIL to further invest up to Rs 160 crore, which is expected to be complete by March 2023, it said in a regulatory filing. The total investment will translate into 80.3 percent of equity share capital in Strand on a fully diluted basis.
August 2021: Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of RIL, along with strategic investors Paulson & Co. Inc. and Bill Gates, and a few other investors, has announced an investment of $144 million in Ambri Inc, an energy storage company based in Massachusetts, USA.
June 2021: The Abu Dhabi National Oil Company (ADNOC) announced on June 29 that it has entered into a strategic partnership with RIL to join a new world-scale chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi. Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant, with a capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tons of ethylene dichloride, and 360 thousand tons of PVC annually.
June 2021: RIL chairman Mukesh Ambani announced at the 44th AGM the induction of Saudi Aramco as a "strategic partner" in the conglomerate's O2C business. As part of the pact, Aramco's Yasir Al-Rumayyan would join the RIL board as an independent director.
February 2021: RIL subsidiary RSBVL acquires an additional equity stake in its investee company skyTran Inc, the company announced on February 28. The additional equity stake were acquired by RSBVL for a consideration of $26.76 million, increasing its shareholding to 54.46 percent on a fully diluted basis, said the statement.
October 2020: Abu Dhabi state fund Mubadala Investment Company will invest Rs 6,247.5 crore to secure 1.4 percent in the retail unit of RIL. Mubadala had earlier announced an investment of $1.2 billion in Jio Platforms as well.
August 2020: Saudi Aramco Chief Executive Amin Nasser has said the company is 'still working on the deal to invest in Reliance Industries', Bloomberg reported, clearing the air on the agreement between the two companies.
August 2020: Reliance Retail acquires majority stake in Netmeds (promoted by Vitalic Health and subsidiaries) for Rs 620 crore. RIL also agrees to buy Kishore Biyani's Future Group's assets for $3.4 billion. in the month.
July 2020: RIL and BP announce the launch of their joint venture Reliance BP Mobility Limited (RBML). The joint venture will begin selling fuels and lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp” in due course.
May 2020: RIL's digital subsidiary Reliance Jio Platforms gets investments worth Rs 78,562 crore in the last one month from large investors including KKR, Facebook, Silver Lake, Vista and General Atlantic.
April 2020: RIL inks deals with Facebook to invest Rs 43,574 crore in Jio Platforms for almost 10 percent stake.
October 2019: RIL announces the creation of Jio Platforms.
August 2019: At the 42nd AGM, Mukesh Ambani announces plan to sell stake in RIL's O2C business to Aramco. The deal with Aramco, which entailed a stake sale of 20 percent in the O2C business was expected to be completed by March 2020.
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