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Mukesh Ambani eyes major deal! Even Gautam Adani stepped back from race, Reliance to become biggest…, deal is about...
Mukesh Ambani eyes major deal! Even Gautam Adani stepped back from race, Reliance to become biggest…, deal is about...

India.com

timea day ago

  • Business
  • India.com

Mukesh Ambani eyes major deal! Even Gautam Adani stepped back from race, Reliance to become biggest…, deal is about...

Mukesh Ambani eyes major deal! Even Gautam Adani stepped back from race, Reliance to become biggest…, deal is about... Rosneft, a big player in the Russian energy sector, is looking to dispose its investment in India's Nayara Energy. News sources have indicated that Rosneft entered discussions with Reliance Industries (RIL), after previously failing to inspire interest from numerous other Indian firms, as well as a lack of interest from government-owned firms. Rosneft had put a $20 billion valuation on the stake previously, which was simply too high and had scared off would-be buyers. Reliance and Rosneft negotiations are currently at a very early stage. Russia's Rosneft in early talks with Reliance to sell stake in Indian unit Russian oil company PJSC Rosneft Oil Company is discussing selling its 49.13 percent stake in Nayara Energy with Reliance Industries, sources told news agency PTI. Nayara owns a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps across India. Reliance is holding preliminary discussions for the purchase of Nayara Energy, which might allow it to become larger than state-owned Indian Oil Corporation (IOC) and would also expand its advantage in fuel retail. However, these negotiations are in the preliminary stages, and there's no guarantee a deal will go through, as valuation is still a key issue, according to three people with direct knowledge of the matter, PTI reported. In the last year, Rosneft's senior officials have traveled to India three times, including visits to Ahmedabad and Mumbai for talks with potential investors. Due to Western sanctions limiting Rosneft's ability to repatriate earnings from its Indian operations, the Russian oil company is looking to exit its investment in Nayara Energy. As a result, the ideal buyer would likely be a company with significant overseas revenues or an international presence, enabling them to make swift payments abroad for the acquisition. Sources informed PTI that Reliance earns a lot of income from international markets as a major fuel exporter. This makes them a likely candidate to buy Rosneft's stake in Nayara. Emails sent to Rosneft for comment were not returned, and a Reliance spokesperson told PTI, 'As a policy, we do not comment on media speculation and rumours.' 'Our company evaluates various opportunities on an ongoing basis,' the spokesperson told PTI. 'We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,' the spokesperson added. Rosneft, which purchased Essar Oil in 2017 for $12.9 billion, has run into challenges in fully benefiting from its India business because of international sanctions that hinder the repatriation of earnings. After the acquisition, Essar Oil was renamed Nayara Energy. In 2024, the Russian energy company decided to exit Nayara and has been looking for buyers. Rosneft is not alone in this. UCP Investment Group, a major Russian financial company, is also seeking to sell its 24.5 percent stake in Nayara Energy. The remaining ownership in Nayara Energy includes Trafigura Group, which has a 24.5 percent interest in Nayara, as well as a number of retail investors. According to sources, if a transaction were completed, Trafigura might also exit the business, potentially within months, and probably on similar terms. The stakes held by Rosneft and UCP were offered to a number of major players, including Reliance Industries, the Adani Group, Saudi Aramco, and a state-owned consortium of ONGC and IOC. However, Rosneft's $20 billion valuation for Nayara was seen to be too high by almost every potential investor, and this has held up any deal for the time being. Adani Group turned down the investment proposal for Nayara Energy The Adani Group turned down the investment proposal for Nayara Energy, given that oil refining is perceived as a sunset industry, while the world is transitioning quickly to clean energy and decarbonization. In addition to the high price ask, sources said Adani's strategic partnership with French energy giant TotalEnergies contributed to the decision. The two companies have multi-billion-dollar agreements in the city gas and renewable energy spaces. As part of their strategic partnership agreement, Adani agreed to limit future investments in fossil fuels to only natural gas, meaning Adani could not be part of the Nayara deal. Reliance to become the largest oil refiner if… Nayara makes the most strategic sense for Reliance, according to sources. Reliance operates twin refineries in Jamnagar, Gujarat with a combined capacity of 68.2 million tonnes per year, in very close proximity to Nayara's 20-million-tonnes-a-year refinery in Vadinar, also in Gujarat. If Reliance buys Nayara, it would exceed IOC's capacity of 80.8 million tonnes per year to become India's largest oil refiner. Most importantly, Nayara's network with a total of 6,750 petrol pumps would give Reliance a good grip on the fuel retail side, where it currently only runs 1,972 out of India's 97,366 fuel stations. Mukesh Ambani eyes major deal! Even Gautam Adani steps back from the race Sources indicate that Rosneft reduced its valuation to USD 17 billion since the talks began; nonetheless, companies like Reliance still find this valuation too high. But there has been no formal deal, and Rosneft has made no official statement.

Mukesh Ambani to become India's oil magnate with stake purchase of THIS major Russian oil company; Reliance will become biggest...
Mukesh Ambani to become India's oil magnate with stake purchase of THIS major Russian oil company; Reliance will become biggest...

India.com

time4 days ago

  • Business
  • India.com

Mukesh Ambani to become India's oil magnate with stake purchase of THIS major Russian oil company; Reliance will become biggest...

New Delhi: Mukesh Ambani's Reliance Industries is deliberating on closing a deal with the Russian oil giant PJSC Rosneft Oil Company, the talks for which are in an early stage. What is the deal? The talks are about sale of Rosneft's 49.13 per cent stake in Nayara Energy, which operates a 20-million tonnes-a-year oil refinery and 6,750 petrol pumps in India, sources said. Reliance has held preliminary talks for the acquisition of Nayara. If it happens then it will help it overtake state-owned Indian Oil Corporation (IOC) to become India's No.1 oil refiner. Since the discussions are in initial stage, there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, said sources. Prior to the negotiations with Reliance Industries, top officials from Rosneft have visited India at least thrice in the last one year, including visits to Ahmedabad and Mumbai, for talks with potential investors. Why Reliance Industries? Rosneft is looking for a potential buyer who has substantial earnings overseas or is an international company, both of which could make quick overseas payouts for the stake. Actually, Rosneft wants to exit Nayara due to western sanctions which are limiting its ability to repatriate full earnings from India operations. Being a large exporter of fuel, Reliance has substantial overseas income, the sources said. 'As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (SEBI Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,' a Reliance spokesperson said. Rosneft did not respond to any query. What is relation between Rosneft and Essar Oil? Rosneft acquired Essar Oil in 2017 in a USD 12.9-billion deal. Essar Oil was subsequently named Nayara Energy. Presently, Rosneft is unable to get full financial benefits from its Indian operations, including repatriating earnings, due to international sanctions. PJSC Rosneft Oil Company decided to exit Nayara sometime in 2024 and began scouting for potential buyers. Alongside Rosneft, UCP Investment Group, a major Russian financial firm, is also selling its 24.5 per cent stake in Nayara. Offer to Adani The stake of Rosneft and UCP was offered to Reliance Industries, Adani Group, Saudi Aramco and state-owned ONGC/IOC combine among others. According to sources, Saudi Aramco is a serious contender to take over Nayara as it will fulfil its long-desired ambition of having downstream presence in the world's fastest growing oil market. Aramco, the world's largest oil exporter, had previously agreed to invest in a giant oil refinery-cum-petrochemical complex that state-owned firms had planned to build in Maharashtra, but that project hasn't taken off due to land acquisition delays. Reliance's advantages Reliance operates twin refineries, with a combined capacity of 68.2 million tonnes per annum at Jamnagar in Gujarat and Nayara makes the most sense for Reliance. Ambani's company's units are in the vicinity of Nayara's 20-million tonnes-a-year unit at Vadinar, Gujarat and Nayara will help it cross IOC's 80.8-million tonnes-a-year capacity to become No.1 refiner in the country.

Russia's Rosneft in early talks with Reliance to sell stake in India unit
Russia's Rosneft in early talks with Reliance to sell stake in India unit

Time of India

time4 days ago

  • Business
  • Time of India

Russia's Rosneft in early talks with Reliance to sell stake in India unit

New Delhi: Russian oil giant PJSC Rosneft Oil Company is in early talks with Reliance Industries for sale of its 49.13 per cent stake in Nayara Energy, which operates a 20-million tonnes-a-year oil refinery and 6,750 petrol pumps in India , sources said. Reliance has held preliminary talks for acquisition of Nayara, which will help it overtake state-owned Indian Oil Corporation (IOC) to become India's No.1 oil refiner as well as give a meaningful presence in the fuel marketing space. But the talks are at preliminary stage and there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, three sources with direct knowledge of the matter said. Top Rosneft officials have visited India at least thrice in the last one year, including visits to Ahmedabad and Mumbai, for talks with potential investors. For Rosneft, which is looking to exit from Nayara due to western sanctions limiting its ability to repatriate full earnings from India operations, a potential buyer could be one who has substantial earnings overseas or is an international company - both of which could make quick overseas payouts for the stake. Being a large exporter of fuel, Reliance has substantial overseas income, the sources said. While emails sent to Rosneft for comments remained unanswered, a Reliance spokesperson said, "As a policy, we do not comment on media speculation and rumours." "Our company evaluates various opportunities on an ongoing basis," the spokesperson said. "We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges." Rosneft, which had in 2017 acquired Essar Oil in a USD 12.9-billion deal, is unable to get full financial benefits from its Indian operations, including repatriating earnings, due to international sanctions. Essar Oil was subsequently named Nayara Energy. The Russian giant sometime in 2024 decided to exit Nayara and began scouting for potential buyers. Alongside Rosneft, UCP Investment Group , a major Russian financial firm, is also selling its 24.5 per cent stake in Nayara. The rest of Nayara's ownership includes Trafigura Group (24.5 per cent) and a group of retail shareholders. If a deal is struck, Trafigura too may exit the venture within months on same terms, they said. The stake of Rosneft and UCP was offered to Reliance Industries, Adani Group, Saudi Aramco and state-owned ONGC/IOC combine among others. But the USD 20-billion valuation that Rosneft had put for Nayara was considered too steep a price by almost every potential investor. Adani Group politely declined the offer to invest in an oil refinery, which is considered a sunset business given the energy transition planned worldwide. Besides the asking price being too high, the conglomerate's understanding with French energy giant TotalEnergies, with whom it has stitched multi-billion dollar partnership in city gas and renewable energy space, also came in the way of investing in Nayara, the sources said, adding Adani had in its deal with TotalEnergies agreed to limit future investments in fossil fuel space to only natural gas. Sources said Saudi Aramco is a serious contender to take over Nayara as it will fulfil its long-desired ambition of having downstream presence in the world's fastest growing oil market. Aramco, the world's largest oil exporter, had previously agreed to invest in a giant oil refinery-cum-petrochemical complex that state-owned firms had planned to build in Maharashtra, but that project hasn't taken off due to land acquisition delays. It had in 2019 signed a non-binding agreement to buy a 20 per cent stake in Reliance's oil-to-chemical (O2C) business for USD 15 billion but the deal was called off two years later over valuation issues. Sources said Aramco too considers the USD 20 billion valuation too high. It wasn't known if talks between Rosneft and Aramco have progressed beyond initial contact. Nayara makes the most sense for Reliance, they said. Reliance operates twin refineries, with a combined capacity of 68.2 million tonnes per annum at Jamnagar in Gujarat. Its units are in the vicinity of Nayara's 20-million tonnes-a-year unit at Vadinar, Gujarat. Nayara will help it cross IOC's 80.8-million tonnes-a-year capacity to become No.1 refiner in the country. But more importantly, the 6,750 petrol pumps of Nayara would help it gain a meaningful share in the fuel retailing business. Reliance has just 1,972 petrol pumps out of 97,366 outlets in the country. "Oil refining alone is not a profitable business. Unless you have marketing, you can never make money," an industry official explained. Sources said for both Oil and Natural Gas Corporation (ONGC) and IOC, the valuation being sought by Rosneft is too high. For them the value of petrol pumps should not be more than ₹ 3-3.5 crore per outlet. This gives a valuation of not more than USD 2.5-3 billion for the marketing network and similar value is what they see for the oil refinery, they said. But for Reliance, the value of the marketing network is more, perhaps ₹ 7 crore per outlet (USD 5.5 billion). And given the synergies the combined operations of Jamnagar and Vadinar refineries can derive, the 20-million tonnes Nayara unit and its planned petchem unit could be worth another USD 5 billion, they said. Sources said since the start of talks, Rosneft has brought down the valuation to USD 17 billion but that too is considered too high by companies such as Reliance. However, no official deal has been confirmed, and Rosneft has not made a formal statement on the matter yet. PTI

Russia's Rosneft Oil Company in early talks with Reliance to sell stake in India unit
Russia's Rosneft Oil Company in early talks with Reliance to sell stake in India unit

Economic Times

time4 days ago

  • Business
  • Economic Times

Russia's Rosneft Oil Company in early talks with Reliance to sell stake in India unit

ANI Reliance Chairman Mukesh Ambani Russian oil giant PJSC Rosneft Oil Company is in early talks with Reliance Industries for sale of its 49.13 per cent stake in Nayara Energy, which operates a 20-million tonnes-a-year oil refinery and 6,750 petrol pumps in India, sources said. Reliance has held preliminary talks for acquisition of Nayara, which will help it overtake state-owned Indian Oil Corporation (IOC) to become India's No.1 oil refiner as well as give a meaningful presence in the fuel marketing space. But the talks are at preliminary stage and there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, three sources with direct knowledge of the matter said. Top Rosneft officials have visited India at least thrice in the last one year, including visits to Ahmedabad and Mumbai, for talks with potential investors. For Rosneft, which is looking to exit from Nayara due to western sanctions limiting its ability to repatriate full earnings from India operations, a potential buyer could be one who has substantial earnings overseas or is an international company - both of which could make quick overseas payouts for the stake. Being a large exporter of fuel, Reliance has substantial overseas income, the sources said. While emails sent to Rosneft for comments remained unanswered, a Reliance spokesperson said, "As a policy, we do not comment on media speculation and rumours." "Our company evaluates various opportunities on an ongoing basis," the spokesperson said. "We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges." Rosneft, which had in 2017 acquired Essar Oil in a USD 12.9-billion deal, is unable to get full financial benefits from its Indian operations, including repatriating earnings, due to international sanctions. Essar Oil was subsequently named Nayara Energy. The Russian giant sometime in 2024 decided to exit Nayara and began scouting for potential buyers. Alongside Rosneft, UCP Investment Group, a major Russian financial firm, is also selling its 24.5 per cent stake in Nayara. The rest of Nayara's ownership includes Trafigura Group (24.5 per cent) and a group of retail shareholders. If a deal is struck, Trafigura too may exit the venture within months on same terms, they said. The stake of Rosneft and UCP was offered to Reliance Industries, Adani Group, Saudi Aramco and state-owned ONGC/IOC combine among others. But the USD 20-billion valuation that Rosneft had put for Nayara was considered too steep a price by almost every potential investor. Adani Group politely declined the offer to invest in an oil refinery, which is considered a sunset business given the energy transition planned worldwide. Besides the asking price being too high, the conglomerate's understanding with French energy giant TotalEnergies, with whom it has stitched multi-billion dollar partnership in city gas and renewable energy space, also came in the way of investing in Nayara, the sources said, adding Adani had in its deal with TotalEnergies agreed to limit future investments in fossil fuel space to only natural gas. Sources said Saudi Aramco is a serious contender to take over Nayara as it will fulfil its long-desired ambition of having downstream presence in the world's fastest growing oil market. Aramco, the world's largest oil exporter, had previously agreed to invest in a giant oil refinery-cum-petrochemical complex that state-owned firms had planned to build in Maharashtra, but that project hasn't taken off due to land acquisition delays. It had in 2019 signed a non-binding agreement to buy a 20 per cent stake in Reliance's oil-to-chemical (O2C) business for USD 15 billion but the deal was called off two years later over valuation issues. Sources said Aramco too considers the USD 20 billion valuation too high. It wasn't known if talks between Rosneft and Aramco have progressed beyond initial contact. Nayara makes the most sense for Reliance, they said. Reliance operates twin refineries, with a combined capacity of 68.2 million tonnes per annum at Jamnagar in Gujarat. Its units are in the vicinity of Nayara's 20-million tonnes-a-year unit at Vadinar, Gujarat. Nayara will help it cross IOC's 80.8-million tonnes-a-year capacity to become No.1 refiner in the country. But more importantly, the 6,750 petrol pumps of Nayara would help it gain a meaningful share in the fuel retailing business. Reliance has just 1,972 petrol pumps out of 97,366 outlets in the country. "Oil refining alone is not a profitable business. Unless you have marketing, you can never make money," an industry official explained. Sources said for both Oil and Natural Gas Corporation (ONGC) and IOC, the valuation being sought by Rosneft is too high. For them the value of petrol pumps should not be more than Rs 3-3.5 crore per outlet. This gives a valuation of not more than USD 2.5-3 billion for the marketing network and similar value is what they see for the oil refinery, they said. But for Reliance, the value of the marketing network is more, perhaps Rs 7 crore per outlet (USD 5.5 billion). And given the synergies the combined operations of Jamnagar and Vadinar refineries can derive, the 20-million tonnes Nayara unit and its planned petchem unit could be worth another USD 5 billion, they said. Sources said since the start of talks, Rosneft has brought down the valuation to USD 17 billion but that too is considered too high by companies such as Reliance. However, no official deal has been confirmed, and Rosneft has not made a formal statement on the matter yet.

Russia's Rosneft in early talks with Reliance to sell stake in India unit
Russia's Rosneft in early talks with Reliance to sell stake in India unit

The Print

time4 days ago

  • Business
  • The Print

Russia's Rosneft in early talks with Reliance to sell stake in India unit

But the talks are at preliminary stage and there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, three sources with direct knowledge of the matter said. Reliance has held preliminary talks for acquisition of Nayara, which will help it overtake state-owned Indian Oil Corporation (IOC) to become India's No.1 oil refiner as well as give a meaningful presence in the fuel marketing space. New Delhi, Jun 29 (PTI) Russian oil giant PJSC Rosneft Oil Company is in early talks with Reliance Industries for sale of its 49.13 per cent stake in Nayara Energy, which operates a 20-million tonnes-a-year oil refinery and 6,750 petrol pumps in India, sources said. Top Rosneft officials have visited India at least thrice in the last one year, including visits to Ahmedabad and Mumbai, for talks with potential investors. For Rosneft, which is looking to exit from Nayara due to western sanctions limiting its ability to repatriate full earnings from India operations, a potential buyer could be one who has substantial earnings overseas or is an international company – both of which could make quick overseas payouts for the stake. Being a large exporter of fuel, Reliance has substantial overseas income, the sources said. While emails sent to Rosneft for comments remained unanswered, a Reliance spokesperson said, 'As a policy, we do not comment on media speculation and rumours.' 'Our company evaluates various opportunities on an ongoing basis,' the spokesperson said. 'We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges.' Rosneft, which had in 2017 acquired Essar Oil in a USD 12.9-billion deal, is unable to get full financial benefits from its Indian operations, including repatriating earnings, due to international sanctions. Essar Oil was subsequently named Nayara Energy. The Russian giant sometime in 2024 decided to exit Nayara and began scouting for potential buyers. Alongside Rosneft, UCP Investment Group, a major Russian financial firm, is also selling its 24.5 per cent stake in Nayara. The rest of Nayara's ownership includes Trafigura Group (24.5 per cent) and a group of retail shareholders. If a deal is struck, Trafigura too may exit the venture within months on same terms, they said. The stake of Rosneft and UCP was offered to Reliance Industries, Adani Group, Saudi Aramco and state-owned ONGC/IOC combine among others. But the USD 20-billion valuation that Rosneft had put for Nayara was considered too steep a price by almost every potential investor. Adani Group politely declined the offer to invest in an oil refinery, which is considered a sunset business given the energy transition planned worldwide. Besides the asking price being too high, the conglomerate's understanding with French energy giant TotalEnergies, with whom it has stitched multi-billion dollar partnership in city gas and renewable energy space, also came in the way of investing in Nayara, the sources said, adding Adani had in its deal with TotalEnergies agreed to limit future investments in fossil fuel space to only natural gas. Sources said Saudi Aramco is a serious contender to take over Nayara as it will fulfil its long-desired ambition of having downstream presence in the world's fastest growing oil market. Aramco, the world's largest oil exporter, had previously agreed to invest in a giant oil refinery-cum-petrochemical complex that state-owned firms had planned to build in Maharashtra, but that project hasn't taken off due to land acquisition delays. It had in 2019 signed a non-binding agreement to buy a 20 per cent stake in Reliance's oil-to-chemical (O2C) business for USD 15 billion but the deal was called off two years later over valuation issues. Sources said Aramco too considers the USD 20 billion valuation too high. It wasn't known if talks between Rosneft and Aramco have progressed beyond initial contact. Nayara makes the most sense for Reliance, they said. Reliance operates twin refineries, with a combined capacity of 68.2 million tonnes per annum at Jamnagar in Gujarat. Its units are in the vicinity of Nayara's 20-million tonnes-a-year unit at Vadinar, Gujarat. Nayara will help it cross IOC's 80.8-million tonnes-a-year capacity to become No.1 refiner in the country. But more importantly, the 6,750 petrol pumps of Nayara would help it gain a meaningful share in the fuel retailing business. Reliance has just 1,972 petrol pumps out of 97,366 outlets in the country. 'Oil refining alone is not a profitable business. Unless you have marketing, you can never make money,' an industry official explained. Sources said for both Oil and Natural Gas Corporation (ONGC) and IOC, the valuation being sought by Rosneft is too high. For them the value of petrol pumps should not be more than Rs 3-3.5 crore per outlet. This gives a valuation of not more than USD 2.5-3 billion for the marketing network and similar value is what they see for the oil refinery, they said. But for Reliance, the value of the marketing network is more, perhaps Rs 7 crore per outlet (USD 5.5 billion). And given the synergies the combined operations of Jamnagar and Vadinar refineries can derive, the 20-million tonnes Nayara unit and its planned petchem unit could be worth another USD 5 billion, they said. Sources said since the start of talks, Rosneft has brought down the valuation to USD 17 billion but that too is considered too high by companies such as Reliance. However, no official deal has been confirmed, and Rosneft has not made a formal statement on the matter yet. PTI ANZ HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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