Ambani Brothers End Non-Compete Agreement
By Priyanka Roy Chowdhury, Gaea News NetworkMonday, May 24, 2010
MUMBAI, INDIA (GaeaTimes.com)- The first sign of reconciliation between Mukesh Ambani and Anil Ambani after the death of their father and their separation of the family empire came on Sunday afternoon, when the Ambani brothers declared that they were ending the non-compete agreement that prevented both of them from competing with each other in the business field. However, the Ambani brothers also went on to announce another agreement under which the brothers have decided not to compete against each other in the field of power generation based on natural-gas.
The announcement made by one of the richest siblings of the world showed result in the stock market on early Monday itself as was anticipated. The Reliance Natural Resources that is governed by Anil Ambani saw a rise by 39% in Mumbai and the price target for Mukesh Ambani’s Reliance Industries Ltd by the Goldman Sachs Group Inc. was surged up. Under the new agreement, the two brothers will get the opportunity to venture into new businesses and increase individual horizons. Mukesh Ambani will now get an opportunity to venture into the telecommunications and entertainment business which were the forte of Anil Ambani and the younger brother will in turn get to make chemicals and refine oils.
P. Phani Sekhar, the fund manager of the Angel Broking Ltd. said to a media source reportedly that the new agreement is no doubt a positive move towards ending the long feud between them. He also added that the agreement will give them the opportunity to “invest in many more businesses”. The new settlement is reportedly reached after the Supreme Court on May 7 directed the Ambani brothers to enter a fresh deal over the issue of gas supply from the largest gas field on India.
