Ambani brothers took a step toward reconciliation
Ambani brothers took a step toward reconciliation in their long-running feud ending non-compete agreements in a move they hoped would lead to cooperation between the two groups.
Both groups said they aim to reach a conclusion soon for a gas supply agreement between Mukesh Ambani's Reliance Industries (RIL) and younger brother Anil's Reliance Natural Resources that had been at the heart of their dispute. 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.
The statement comes two weeks after India's Supreme Court ruled in Mukesh Ambani's favor in a bitter public dispute over gas pricing that had riven India's richest family and raised questions about the role of big business in government policy. While the feud had captivated the attention of India it had been a major distraction for both groups and the government.
The two brothers are estimated to be worth a combined $43 billion and both live in Mumbai but had not been on speaking terms during their dispute. They split the business empire inherited from their father Dhirubhai Ambani in a 2005 deal brokered by their homemaker mother, Kokilaben.
Mukesh, 53, got the jewel -- Reliance Industries, which has interests in oil and gas exploration, petrochemicals, infrastructure and textiles. Anil, 50, got the telecoms, power and financial services businesses.
India's highest court on May 7 ordered the brothers to renegotiate within six weeks a private natural gas supply contract between Reliance Industries and Reliance Natural.
The new contract must abide by a government price of $4.2 per million metric British thermal unit (mmBtu), compared with $2.34 per mmBtu the brothers agreed on in 2005 for a 17-year period.