Saudi Aramco has cancelled its mega plan to acquire a 20% stake in Reliance Industries Ltd (RIL) for $15 billion. Consequently, RIL has withdrawn the application with the NCLT for segregating oil to chemicals (O2C) business under the new entity Reliance O2C Ltd.

RIL and Aramco signed a non-binding Letter of Intent in August 2019, for a potential 20% stake acquisition by Saudi Aramco in the O2C business. The deal valued the business at $75 billion. Both the companies will re-evaluate the deal in light of RIL's foray into solar energy, the Indian refiner has said in a statement.

"Over the past two years, both the teams made significant efforts in the process of due diligence, despite Covid-19 restrictions. This has been possible due to the mutual respect and long-standing relationship between the two organisations," RIL says.

After RIL's foray into solar energy and materials businesses, both the companies agreed to re-evaluate the proposed investment in the O2C business. Jamnagar, which accounts for a major part of the O2C assets, is envisaged to be the centre for RIL’s new businesses of renewable energy & new materials, supporting the carbon zero commitment, RIL tells.

"The deep engagement over the last two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation. Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate," the company elucidates.

RIL will continue to be Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia.

The Indian refining major plans to build four giga factories in Jamnagar—a solar photovoltaic module factory; an energy storage battery factory; an electrolyser factory; and a fuel cell factory for converting hydrogen into motive & stationary power.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.