Chairman of the Indian conglomerate has announced that Reliance Industries' plans to sell 20% stake in its oil-to-chemical business to Saudi Aramco is delayed.
Reliance last year announced a $15 billion deal with the oil exporter Aramco as part of the Indian company's efforts to cut its debts.
Mukesh Ambani said, "Due to unforeseen circumstances in the energy market and the Covid-19 situation, the deal (with Saudi Aramco) has not progressed as per the original timeline.”
The Aramco deal was initially expected to be completed by March 2020.
Reliance shares fell more than 6% after Ambani's comment on the Aramco deal. The shares closed down 3.8% at Rs 1,844 each. In January, Reliance Joint Chief Financial Officer, V Srikanth said the deal would be completed in next few months without specifying any definitive timeline.
The Indian group has secured investment from a string of companies, including Facebook, Intel and Qualcomm for its digital platform Reliance Jio that helped the company to become net-debt free.
Ambani also said that Reliance had been approached by other international companies for strategic partnerships in its petrochemical business, including in utilising petchem feedstocks.
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