Why the failed Aramco deal’s good for Ambani and three cheers for telecoms tariff hike
Two years on, Reliance calls off a deal for its O2C business and two out of three private telecoms players finally increase tariffs.
25 November, 2021•10 min
0
25 November, 2021•10 min
0
Getting your Trinity Audio player ready...
Why read this story?
Editor's note: Furquan here. Gautam Adani is now the richest Indian, and not Mukesh Ambani. It's still an open race as these two billionaires bet on new sectors to drive growth in the coming years. Ambani is surely not betting on his oil-to-chemicals business, as reflected in the deal with Aramco being called off. Equally interesting was the tariff hike by telecom companies. It's good news, not just for them but for banks and investors too. Read on. Reliance-Aramco deal was long dead When Mukesh Ambani – on 24 June 2021 – made public his plans to go carbon neutral by 2035, the fate of the long overdue stake sale in the oil-to-chemical (O2C) business to Saudi Aramco was effectively sealed. Within months of the announcement, the deal was called off. Aramco had signed a non-binding letter of intent in August 2019 for a potential 20% stake in Reliance Industries’s O2C unit, valued at about $15 billion. The deal would have fetched Reliance somewhere around Rs 1 lakh crore (approximately $1.3 billion) – taking care of a sizable chunk of its then …
More in Business
Business
Dubai’s property market is getting tested, as Iran war drags on
There is a slowdown in transaction volumes and analysts are projecting a decline in future prices. But nobody is anticipating any crashes yet.
You may also like
Business
Reliance’s $3 billion deal sparks life in green ammonia sector
Mukesh Ambani's conglomerate signs one of the world's largest binding green ammonia offtake agreements. In doing so, it delivers a credibility boost to an industry stuck between ambition and execution.
Chaos
The Gulf Report: Aramco’s war warning and the chaos in Bahrain
The oil giant’s chief says the ongoing Mideast conflict and the consequent Strait of Hormuz disruption could have catastrophic consequences; a look at the conflict’s effect in Bahrain.
Business
Sunil Mittal wants to create another Bajaj Finance. Can he?
Bharti Airtel’s ambitious plan for Airtel Money is a result of excess cash. The NBFC’s success will depend on how the parent battles the formidable rivals and India’s data privacy regulations.
