Reliance Eyes Ambitious Takeover of Nayara: A Strategic Play in India's Oil Market

Russian oil powerhouse Rosneft has initiated early negotiations with Reliance Industries for offloading its significant 49.13% stake in Nayara Energy. This strategic move could catapult Reliance to the top of India's oil refining industry and expand its foothold in fuel marketing.

Sources indicate that while conversations are advancing, valuation disputes remain a pivotal issue, potentially stalling the deal. High-profile meetings between Rosneft and potential investors have occurred across India, highlighting the business stakes involved.

For Rosneft, exiting Nayara aligns with strategic shifts amid Western sanctions impacting financial repatriation. While Rosneft eyes potential international buyers, Nayara's position could also appeal to giants like Saudi Aramco seeking downstream market entry, though they too balk at the high price tag.

(With inputs from agencies.)