Aug 12, 2019

Saudi Aramco to buy 20% stake in India's Reliance Industries

Khalid A. Al-Falih, Saudi Arabia's energy minister and chairman of the board of directors at Saudi Aramco. Photo: Gavriil Grigorov/TASS/Getty Images

Saudi Aramco announced an agreement in principle to buy a 20% stake in the oil-to-chemicals business of India’s Reliance Industries. The deal values the unit at $75 billion, including debt.

Why it matters: It's one of the largest-ever foreign investments in India, per a Reliance statement, and comes on the same day that Saudi Aramco held its first-ever earnings call.

  • Caveat: During that earnings call, an Aramco finance executive called it a preliminary agreement that's in the "very, very early stages."

The bottom line: "Aramco has signaled it is trying to become more like Exxon Mobil Corp. or Chevron Corp., which refine as much oil as they produce. This would help the company secure more buyers for what it produces, help cushion against low oil prices and provide the potential to make more profit on refined products such as gasoline and petroleum-based chemicals," write the Wall Street Journal's Sarah McFarlane and Corinne Abrams.

Go deeper: Less than a year after Khashoggi murder, business booms for Saudi Arabia

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Report: Saudi Aramco selects advisers for its IPO revival

The Saudi Aramco oil field complex facilities at Shaybah in the Rub' al Khali. Photo: Reza/Getty Images

Saudi Aramco is selecting advisers to try to move forward on its on-again, off-again, on-again plans for a mammoth IPO, Bloomberg reports.

Why it matters: The listing of a slice of Aramco could be the largest IPO in history, and the proceeds are meant to help fund the kingdom's plans to diversify its crude-dominated economy.

Go deeperArrowAug 20, 2019

Saudi Aramco replaces chairman as oil giant prepares for massive IPO

Saudi Arabian Energy Minister Khalid al-Falih. Photo: Alexander Nemenov/AFP/Getty Images

There's new evidence that Saudi Arabia is serious about moving ahead with a mammoth IPO of shares in state oil giant Aramco after years of delays and uncertainty.

Driving the news: Energy Minister Khalid al-Falih will be replaced as chairman of Aramco by Yasir al-Rumayyan, head of the kingdom's sovereign wealth fund.

Go deeperArrowSep 3, 2019

J.P. Morgan takes the lead as top adviser for Saudi Aramco IPO

Data: Investing.com; Chart: Axios Visuals

J.P. Morgan Chase is close to winning the lead advisory role for state-owned oil company Saudi Aramco's IPO, which is expected to be the largest ever at $25 billion. A final decision is expected next week, CNBC reports, citing inside sources.

What's happening: Saudi authorities reportedly plan to sell 5% of Aramco’s shares on the local Tadawul stock exchange and launch another, much larger, offering in a foreign market in the next 2 years.

Go deeperArrowSep 9, 2019