Reliance Industries Ltd on Friday said it has received nod from the National Company Law Tribunal (NCLT), Mumbai to withdraw its application for segregating the oil-to-chemical (O2C) business from the company.
With this, RIL’s earlier plan to rope in global oil giant Saudi Aramco as a stakeholder in the new unit comes to an end.
“We would like to inform that the Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT) has vide its order dated December 3, 2021 approved the withdrawal of the O2C Scheme. Order of withdrawal of the O2C Scheme has been uploaded on the website of NCLT today i.e. December 24, 2021,” the company informed the stock exchanges today.
The RIL Board had on November 19, 2021, approved the withdrawal of the O2C Scheme, following which an application was submitted before the NCLT.
Back in August 2019, RIL and Saudi Aramco had signed a letter of intent for the latter to potentially acquire a 20 per cent stake in the Ambani-led firm. RIL wanted to create a separate unit of its O2C business with assets worth $42 billion.
Billionaire Mukesh Ambani-led RIL and Saudi Aramco in November had called off a deal to sell 20 per cent stake in RIL’s O2C business to Aramco in light of the Indian firm’s new energy forays.
Thereafter, RIL had urged the NCLT to withdraw the application regarding segregating O2C business from RIL. The stake sale talks were reset in light of Reliance making forays into new energy business by investing $10 billion in alternative energy.
Meanwhile, the RIL stock closed at ₹2,367.15, up 1.90 or 0.080 per cent, on the NSE on Friday.