Reliance announces O2C business into 100 pc subsidiary

ANI
23 Feb 2021, 11:25 GMT+10

Mumbai (Maharashtra) [India], February 23 (ANI): Reliance Industries Ltd (RIL) has initiated the process to move its oil-to-chemicals (O2C) business into an independent subsidiary and will retain 100 per cent management control.

All of refining, marketing and petrochemical assets will be transferred to the O2C subsidiary, it said in regulatory filings at stock exchanges late on Monday.

The promoter group will continue to hold a 49.14 per cent stake in the O2C business and the process will result in no change in shareholding of the company.

"The existing O2C operating team will move to the newly-created subsidiary with the transfer of business, but there will be no dilution of earnings or any restriction on the cash flows," said RIL.

RIL and its O2C subsidiary will work together to move towards the net carbon zero targets by 2035. The O2C business will invest in the next-generation carbon capture and storage technologies to convert carbon dioxide into useful products and chemicals.

It will also accelerate the transition from traditional carbon-based fuels to a hydrogen economy, RIL said adding the development will have no impact on its consolidated financial position, cost of capital, borrowings, investment-grade international and domestic AAA credit ratings.

The move will facilitate value creation through strategic partnerships, including the deal with Saudi Aramco, and attract dedicated pools of investor capital.

The company said that talks with Aramco -- the world's largest crude oil exporter -- to acquire 20 per cent stake in RIL's O2C business are still on.

Various approvals for the reorganisation to be in place by the second quarter of FY22. Following the reorganisation, RIL's stake in Reliance Retail Ventures will be 85.1 per cent and in Jio Platforms 67.3 per cent. (ANI)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Mexico Star.

More Information

null in null

Lifestyle

Section

Dublin thrives in colorful St. Patrick’s Day celebrations

Thousands line streets of Dublin for St Patrick's Day parade

DUBLIN, Ireland: Dublin came alive with energy and color as thousands lined the streets to celebrate St. Patrick's Day, soaking in...

Prime Minister Narendra Modi addresses programme of Bavaliyali Dham

New Delhi [India], March 21 (ANI): Prime Minister Narendra Modi delivered his remarks during the programme of Bavaliyali Dham related...

Mumbai Cricket Association honours Dilip Vengsarkar, Diana Edulji with lifetime achievement awards

Mumbai (Maharashtra) [India], March 20 (ANI): The Mumbai Cricket Association (MCA) on Thursday conferred cricket legends Dilip Vengsarkar...

"Find a way to workout": Rashmika Mandanna shares pictures of her 'things she love'

Mumbai (Maharashtra) [India], March 20 (ANI): Actor Rashmika Mandanna, who is enjoying the success of her latest film 'Chhaava' opposite...

Himachal govt to seek legal opinion to take over power projects operating without set timelines: CM Sukhu

Shimla (Himachal Pradesh) [India], March 20 (ANI): Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday said that his...

"AAP, BJP have no faith in democracy": Ashok Gehlot on detention of farmers in Punjab

Jaipur (Rajasthan) [India], March 20 (ANI): Former Rajasthan Chief Minister Ashok Gehlot on Thursday lashed out at the Aam Aadmi Party...

International

Section