Mukesh Ambani-owned Reliance Industries Limited, India’s most valuable company, announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.
In a late-night filing to stock exchanges, the company said the reorganization would enable a focused pursuit of opportunities across the O2C value chain, improved efficiencies through a self-sustaining capital structure.
“Reorganisation of O2C business facilitates participation by strategic investors and marquee sector-focused investors,” it added.
The demerger plans gained momentum after RIL resumed talks with the Saudi Arabia-based oil company, after months of pause caused by the coronavirus pandemic. RIL has acknowledged that there are “ongoing talks” with Aramco for a deal, without giving more details.
It further added that the company expects to get the necessary approvals for O2C business spin-off by the second quarter of the next fiscal year. Mumbai-headquartered oil major also announced that it aims to work with the O2C business to reduce its carbon footprint and become “net carbon zero” by 2035.