Aramco in talks for $25 bn all-stock Reliance deal

Saudi Aramco is in advanced talks for an allstock deal to acquire a stake in Reliance Industries Ltd's oil refining and chemicals business, people with knowledge of the matter said.

The Middle Eastern energy firm is discussing the purchase of a roughly 20 per cent stake in the Reliance unit for about $20 billion to $25 billion in Aramco's shares, the people said, asking not to be identified because the information is private. Reliance, backed by billionaire Mukesh Ambani, could reach an agreement with Aramco as soon as the coming weeks, the people said.

Shares in Reliance extended gains in Mumbai after the report.

A deal would help Reliance lock in a steady supply of crude oil for its giant refineries and make the Indian company a shareholder in Aramco.

Based on Aramco's market valuation of about $1.9 trillion, a transaction would give Reliance a stake of around 1 per cent in the world's biggest energy company.

Details of the potential transaction are still being negotiated, and talks could drag on longer or fall apart, the people said. A representative for Aramco declined to comment. The Saudi government's Centre for International Communication didn't immediately respond to an email requesting comment.

A representative for Reliance said the company does not have anything to add beyond Ambani's comments at the shareholders' meeting in June, when the conglomerate appointed Aramco chairman Yasir Al-Rumayyan to the board. Ambani had said Reliance could finalise an investment deal with the oil producer this year.

Aramco said last week it was doing due diligence on the deal and that it should be completed this year.