Reliance Industries is reportedly in early-stage talks to acquire Rosneft’s 49.13% stake in Nayara Energy, marking a potentially transformative move in India’s fuel refining and retail sector
Why This Deal Matters
- Refining dominance: Acquiring Nayara would make Reliance India’s largest oil refiner, even overtaking Indian Oil Corporation (IOC) in capacity
- Fuel retail expansion: Nayara operates ~6,700 petrol pumps across India, adding to Reliance’s fast-growing network
- Sanctions drive sale: Rosneft’s struggle to repatriate earnings from India under Western sanctions is pushing the sale
Deal Status & Valuation Challenges
- These are preliminary discussions, with valuation identified as a key sticking point .
- Nayara Energy’s valuation is estimated at $17–20 billion, including potential stake from UCP at around $5 billion
- Rosneft has visited India multiple times—especially in Ahmedabad and Mumbai—to explore the sale .
Strategic Impacts on Reliance
- Global foot: With overseas earnings, Reliance is well-positioned to pay abroad for the stake, addressing Rosneft’s key concern
- Vertical integration: Combining Vadinar (20 mtpa) and Jamnagar (68 mtpa) refineries could create huge cost synergies .
- Retail scale: Control of Nayara’s station network would strengthen Reliance’s hold over the fuel-to-chemicals value chain.
Other Players in the Race
Potential bidders include:
- Adani Group and JSW Group—though they’ve shown caution due to high cost and fossil-fuel focus
- Saudi Aramco—seen as a serious contender but balking at high valuation
- UCP Investment Group planning to sell its 24.5% share separately
What Happens Next?
| Milestone | Timeline |
|---|---|
| Valuation negotiation | Ongoing |
| Regulatory approvals | Required post-deal |
| Potential closing date | Late 2025–2026 depending on due diligence and sign-offs |
Bottom Line:
If finalized, this acquisition would significantly boost Reliance’s refining and marketing strength, reshape India’s private fuel landscape, and offer Rosneft a much-needed exit from an asset entangled by sanctions. However, the high valuation and regulatory complexity mean the deal is still far from guaranteed.
