Reliance Industries said the decision was in light of their ambition to foray into renewable energy and the evolving nature of company's business portfolio.
Mukesh Ambani-led Reliance Industries on Friday said the company would re-evaluate its 20 per cent stake sale of its oil-to-chemical business to Saudi Aramco. The company informed that the decision was mutual and in light of the company's foray into renewable energy and the evolving nature of the company's business portfolio. Reliance Industries added that its application to the National Company Law Tribunal for segregating the oil-to-chemical business would be subsequently withdrawn.
"Reliance recently unveiled its plans for the New Energy & Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It will be amongst the largest integrated renewable energy manufacturing facilities in the world," the company stated.
The $15 billion stake sale was announced in August 2019. The deal was to be completed by March last year, however, it got delayed.
The Indian conglomerate stated that it would continue being Saudi Aramco's preferred partner for private sector investments in India. Also, Reliance Industries would continue collaborating with Saudi Aramco and Saudi Basic Industries Corporation for investments in Saudi Arabia.
Reliance added that the proposal could be put to reconsideration because of the mutual respect and long-standing relationship between the two organisations.
In October, Reliance Industries had received shareholder approval to appoint Saudi Aramco Chairman Yasir Al-Rumayyan on the company's board. Shareholder California State Teachers' Retirement System (CALSTRS) had opposed the move owing to a conflict of interest position pertaining to the Saudi Aramco chairman's position in his home country's Public Investment Fund (PIF) as governor.
However, the proposal for the appointment was cleared with less than 2 per cent opposition.
Earlier in the month, the conglomerate clarified to its shareholders that the Saudi Chairman's appointment had nothing to do with the company's stake sale to Saudi Aramco.