Saudi Aramco is set take a 20% stake in Reliance Industries’ oil to chemicals division in a deal giving the business an enterprise value (EV) of $75bn, the Indian petrochemicals producer said on Monday. The two companies have signed a non-binding letter of intent (LoI) that proposes that the key pillar company of the Saudi economy would acquire a significant stake in Reliance’s refining, petrochemicals and fuels marketing businesses.The deal would be one of the largest investments ever made by a foreign entity in India, Reliance said. An official announcement will be made following the conclusion of due diligence.Reliance is reportedly looking to become a debt-free company by 2021, and the deal could have a substantial impact on deleveraging targets while reducing its exposure to the oil and gas market.
