Gautam Adani looking into forming a partnership with Saudi Aramco

Indian conglomerate Adani Group is looking into possible partnerships in Saudi Arabia, including the possibility of buying a stake in the world’s largest oil exporter.

According to sources, the group, led by Indian tycoon Gautam Adani, has held preliminary talks with Saudi Arabia’s aramco and the country’s Public Investment Fund on a variety of potential cooperation and joint investment opportunities. According to the sources, he has discussed the possibility of purchasing a portion of PIF’s Aramco stake.

While Adani is unlikely to pay billions of dollars in cash for Aramco shares in the near term, he may consider tying an investment to a larger asset-peg or swap deal, according to the people. According to one of the sources, the Indian company could collaborate with Aramco or its subsidiaries, such as Sabic, in areas such as renewable energy, crop nutrients, and chemicals.

According to another source, Adani may also offer the PIF, Saudi Arabia’s sovereign wealth fund, the opportunity to invest in Indian infrastructure. The discussions are still in the early stages, and Adani has not decided on the form any potential cooperation will take, according to the sources.

A deal could help Aramco strengthen ties with one of the world’s most rapidly growing energy consumers. The Saudi oil giant negotiated a potential $15 billion investment in Indian billionaire Mukesh Ambani’s oil-to-chemicals unit for more than two years. Talks with Dependence Industries Ltd. were halted in November. At the time, Aramco stated that it would consider investing in India again. The Adani Group did not respond to a request for comment. Aramco and PIF spokespeople declined to comment.

PIF received a 4% stake from the Saudi government last month. Based on Aramco’s closing price in Riyadh on Thursday, the shares are now worth around $89 billion. Gautam Adani is Asia’s second-richest person, with a net worth of $90.5 billion. His conglomerate is involved in a wide range of industries, including ports, power, renewable energy, airports, coal trading, and data centres.

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