In a major development, the two Ambani brothers -- Mukesh and Anil -- on 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," the Anil Ambani group said in a statement.
The harmony comes within a few days of the Supreme Court declining to give any relief to the 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," the statement added.
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.
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 canceling 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 and Reliance Natural Resources will expeditiously negotiate gas supply arrangements in accordance with the orders of the 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 statement added.
