Saudi Arabia’s government-owned oil/gas company is checking out a deal with one of India’s biggest companies.
Saudi Aramco, the third-largest company in the world, is in talks to acquire a 20% stake in Reliance Industries’ oil refining and chemicals business. Reliance, owned by Indian billionaire Mukesh Ambani, is expected to close the all-stock deal in the next few weeks.
The deal would help forge a stronger relationship between Aramco and one of its biggest customers. It’s the kind of deal where everybody could win something. According to Bloomberg, Reliance would gain “a steady supply of oil for its giant refineries … [and become] a shareholder in Aramco.” Aramco would increase sales to become one of the world’s largest economies.
$RELIANCE traded up 1.09% today on the news. If the deal closes, it’s likely that Ambani and Reliance will own approximately 1% of Aramco. As of today, the company is valued at over $1.87 trillion.