What Happened: Saudi Arabian Oil Co. (Saudi Aramco) has agreed to acquire a 20 percent stake in Indian oil company Reliance Industries Ltd.'s oil and chemicals segment for $15 billion, The Wall Street Journal reported Aug. 12.
Why It Matters: Saudi Aramco's move comes as it is attempting to boost its valuation for a potential initial public offering after also taking over a majority stake in Saudi Basic Industries Corporation.
Background: The Saudi government is reportedly targeting the first half of 2020 to launch the IPO. However, a global economic slowdown and weak oil pricing will make it harder for Riyadh to secure the $2 trillion valuation for Saudi Aramco as desired by Crown Prince Mohammed bin Salman.
- Why Business as Usual May Soon Change in Saudi Arabia (April 29, 2019)
- The World's Oil Producers Prepare for a New Era of Low Prices (Jan. 7, 2019)
- Why Saudi Arabia is Embracing a New Nationalism (Jan. 4, 2019)