It was a fight between two eminent business honchos. In a major development on the sibling rivalry between Mukesh and Anil Ambani - they decided to bury their differences and create a harmonious environment of co-operation and collaboration between their groups.
As stated by Anil Ambani, all existing non-compete agreements between the two groups executed in January 2006 have been cancelled. This harmony followed only after the Supreme Court declined to give any relief to younger brother in the gas dispute. As per the Supreme Court order, RIL (Mukesh) and RNRL (Anil) will expeditiously negotiate gas supply arrangement and hope to conclude negotiations very soon.
The cancellation of the existing non-compete agreement will provide enhanced operational and financial flexibility to both groups and greater ability to participate in high growth sectors such as oil and gas, petrochemical, telecom, power and financial services, the Anil Ambani Group said. However, RIL has agreed not to enter into the gas-based power generation business for the period up to March 2022.
According to RIL these developments will give no more space to any further disputes between the two groups, on matters relating to the scope and interpretation of the non-compete obligations. RIL and Reliance Natural Resources (RNRL) will expeditiously negotiate gas supply arrangements in accordance with the orders of the Hon'ble Supreme Court of India.
RIL and Reliance ADA Group are hopeful and confident that all these steps will create an overall environment of harmony, co-operation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both groups, the RIL statement added.
As stated by Anil Ambani, all existing non-compete agreements between the two groups executed in January 2006 have been cancelled. This harmony followed only after the Supreme Court declined to give any relief to younger brother in the gas dispute. As per the Supreme Court order, RIL (Mukesh) and RNRL (Anil) will expeditiously negotiate gas supply arrangement and hope to conclude negotiations very soon.
The cancellation of the existing non-compete agreement will provide enhanced operational and financial flexibility to both groups and greater ability to participate in high growth sectors such as oil and gas, petrochemical, telecom, power and financial services, the Anil Ambani Group said. However, RIL has agreed not to enter into the gas-based power generation business for the period up to March 2022.
According to RIL these developments will give no more space to any further disputes between the two groups, on matters relating to the scope and interpretation of the non-compete obligations. RIL and Reliance Natural Resources (RNRL) will expeditiously negotiate gas supply arrangements in accordance with the orders of the Hon'ble Supreme Court of India.
RIL and Reliance ADA Group are hopeful and confident that all these steps will create an overall environment of harmony, co-operation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both groups, the RIL statement added.
The move is good for shareholders of both the groups as they will now concentrate more on their businesses rather than fighting with each other.Uncertainty for shareholders of the two groups is now over and the move could be seen as integration of businesses of the two groups. This is a far-reaching and sensible approach that is a good developement for corporate India ... it is good for the market sentiment. The flexible appraoch with regard to non-compete agreement is a positive development for shareholders and the overall market.
RIL and Reliance ADA Group are hopeful and confident that all these steps will create an overall environment of harmony, co-operation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both groups, the RIL statement announcing the truce said.
