Ambanis bury differences

New Delhi, May 23 (PTI) In a major development, the two
Ambani brothers--Mukesh and Anil-- Sunday decided to bury
their differences and create an environment of harmony,
co-operation and collaboration between their groups.
"All existing non-compete agreement between the two
groups executed in January 2006 cancelled," Anil Ambani group
said in a statement.
The harmony comes within a few days of the Indian
Supreme Court declining to give any relief to younger brother
in the gas dispute.
"A new, simpler non-compete agreement executed limited
to only gas-based power generation. RIL (Mukesh) and RNRL
(Anil) will expeditiously negotiate gas supply arrangement as
per the Supreme Court order and hope to conclude negotiations
very soon," it added.
The cancellation of the existing non-compete agreement
will provide enhanced operational and financial flexibility to
both groups and greater ability t 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.
In an identical statement, Reliance Industries said
"RIL, led by Mukesh D Ambani, and Reliance ADA Group
companies, Reliance Communications, Reliance Infrastructure,
Reliance Natural Resources, and Reliance Capital, led by Anil
D Ambani, have today approved and signed an agreement
cancelling all existing non-compete arrangements entered into
between the two groups in January 2006 pursuant to the scheme
of reorganisation of the Reliance Group and entered into a new
simpler, non-compete Agreement with respect to only gas-based
power generation.
These developments will eliminate any room for further
disputes between the two groups, on matters relating to the
scope and interpretation of the non-compete obligations, RIL
added.
"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. We hope
to conclude these negotiations very soon, the RIL statement
further said.
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 statment added. PTI
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