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Time for Re-alliance New Delhi, May 23 Anil Ambani along with his elder brother Mukesh Ambani today issued identical statements to signal the start of a new beginning. Notably, the corporate war between the two brothers has been raging on ever since the division of the Ambani empire following the death of their father Dhirubhai Ambani. The Ambani duo dumped the contentious non-compete agreements signed in 2006 as part of the division of Reliance empire, saying this would eliminate any room for “disputes”. As a result of this, the Anil Ambani led group can enter into oil, gas, retail and petrochemical businesses while elder Mukesh-led RIL could make forays into telecom, power and financial sector arena. The agreements, approved by the boards of RIL (Mukesh) and ADAG group companies, were announced within days of the two brothers meeting the Prime Minister and top Cabinet ministers and government officials in Delhi. There were also speculations that the deal was a culmination of the discussions between Mukesh and Anil, but no explanation came from either side over how the agreement was arrived at. Rejecting the Anil group firm, RNRLs plea for concessional gas from the RIL, the Supreme Court on May 7 had ruled that though the family settlement had no legal sanctity, the two sides should renegotiate the gas agreement within the framework of government policies. Before the agreements were ratified by the boards of the respective groups, top officials of the Mukesh Ambani-led Reliance Industries and Anil Ambani Group had long sessions. As a goodwill gesture, the RIL said that it would not enter the gas-based power generation arena till 2022, for which two sides would enter into a separate agreement. In similar statements released at the same time, the groups said: “The RIL and Reliance ADA group are hopeful and confident that all these steps would create an overall environment of harmony, cooperation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both the groups”.“All existing non-compete agreement between the two groups executed in January 2006 are cancelled,” the Anil Ambani group said in a statement. “A new, simpler non-compete agreement executed limited to only gas-based power generation. The RIL and the RNRL will expeditiously negotiate gas supply arrangement as per the Supreme Court order and hope to conclude negotiations very soon,” it added. In a similar statement, the RIL said: “The RIL and Reliance ADA Group companies have today approved and signed an agreement canceling all existing non-compete arrangements entered into between the two groups in January 2006 pursuant to the scheme of re-organisation 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, the RIL said. Notably, the non-compete agreements and controversial right of first refusals had become the bone of contention between them and they fought bitterly over the setting up of a power plant at the RIL’s upcoming SEZ in Haryana, and Anil-led Reliance Communications failed deal to acquire South African telecom giant MTS. Bhai-bhai again THE MOVE: The Ambani duo on Sunday dumped the contentious non-compete agreements signed in 2006 as part of the division of Reliance empire, saying this would eliminate any room for “disputes” THE EFFECT: The Anil Ambani-led group can enter into oil, gas, retail and petrochemical businesses, while elder Mukesh-led RIL could make forays into telecom, power and financial sector arena. The RIL (Mukesh) and the RNRL (Anil) said they will expeditiously negotiate gas supply arrangement as per the Supreme Court order and hope to conclude negotiations very soon THE FINAL STAND: The RIL and Reliance ADA group are hopeful and confident that all these steps would create an overall environment of harmony, cooperation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both the groups — Statements issued by the two groups
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