RIL-Facebook deal gets CCI approval

Working to complete $15 billion deal with Saudi Aramco

The Competition Commission of India (CCI) has given approval to Reliance Industries Limited’s $5.7 billion deal with Facebook , even as RIL is working to close its $15 billion deal with world’s largest oil firm Saudi Aramco. “CCI has approved acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC,” the competition watchdog announced on its Twitter handle on Wednesday.

RIL, Jio Platforms and Facebook Inc. signed binding agreements for an investment of ₹43,574 crore by Facebook into Jio Platforms.

“This partnership is aimed at accelerating India’s all-round development, fulfilling the needs of Indian people and the Indian economy. The joint focus will be to digitally enable and empower India’s 60 million MSMEs, 120 million farmers, 30 million small merchants and millions of SMEs in the informal sector, in addition to empowering people seeking various digital services,” RIL chairman Mukesh Ambani said in his letter to shareholders.

Talking about the Aramco deal, Mr. Ambani said, “Reliance is working to complete the contours of a strategic partnership with Saudi Aramco. The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-to-chemicals conversion.”

Recently, RIL raised over ₹1,68,818 crore through investments by global tech investors into Jio Platforms of ₹1,15,694 crore and the rights issue of ₹53,124 crore, making India’s most indebted firm a net debt-free company.

“The combined capital raised has no precedence globally in such a short time. Both of these are also unprecedented in Indian corporate history and have set new benchmarks. It is even more remarkable that this was achieved amid a global lockdown caused by the COVID-19 pandemic,” Mr. Ambani said.

RIL’s rights issue of ₹53,124 crore was oversubscribed 1.59 times, cumulating to an overall commitment of over ₹84,000 crore.

“With feelings of pride and humility, I would like to let you know that this was the largest rights issue in the last 10 years globally by a non-financial institution, and the largest ever in India. Your company thus created a new landmark in the history of India’s capital market,” Mr. Ambani added.

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Printable version | Jul 15, 2020 7:37:53 AM |

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