Saudi Aramco To acquire India’s Reliance Industry

There is no doubt that a few countries in the Middle East hold a huge part of the world’s economy. This is due to the strong stance on petroleum products that they possess and the tons of developments provided by the country which asks for investors to join their cause. The two main leading countries in the Middle East in terms of expansions and economical upgrades are United Arab Emirates and Saudi Arabia.

Saudi Arabia in particular has many different multinational companies that are based in the country which have exceeded all boundaries of expansion. This includes Aramco which is the leading oil company in Saudi Arabia. The company is huge in size with limited competitors being able to reach their level or size. However, in means for more expansions, the company has just recently announced their will to move towards the Indian market and acquire India’s Reliance refining businesses.

The deal in hand focuses on 25% acquisition of the business and industry. By mid-2019 more details are to be released on the valuation of the deal and the price to be paid. However, experts expect numbers to rise up to a range from $10 billion and $15 billion, valuing Reliance’s refining and petrochemicals businesses at between $55 billion and $60 billion.

It is important to keep in mind that Aramco is a global competitor to all businesses in any sector due to the fact that it was named as the company with the larges profit in a year during 2018 (reaching a profit of $111 billion).