Ambani brothers end non-competition agreements
The bitter battle between India's Amabni brothers, the world's richest siblings, has taken a new twist after a joint statement this weekend announced the end of all existing non-competition agreements between their respective companies.
Mukesh Ambani, 53, and his brother Anil, 50, signed the non-competition agreements in 2006 following the splitting of their deceased father's Reliance empire into two separate entities, Reliance Industries and Reliance ADA Group, in 2005.
The agreements have been a constant source of contention between the feuding brothers for the past four years. It is now hoped the brothers will be able to focus their attention on business issues and not each other.
"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," said the statement.
"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," it continued.
This news comes just weeks after the brothers finally settled their most high-profile dispute yet, a disagreement over the price of gas that ended in the Indian Supreme Court. (Continue reading here)
The joint statement also makes reference to this judgement: "RIL and Reliance Natural Resources Ltd (RNRL) will expeditiously negotiate Gas Supply arrangements in accordance with the orders of the Honourable Supreme Court of India. We hope to conclude these negotiations very soon," it said.
Problems began for the brothers after the death of their father, Dhirubhai Ambani, in 2002, when he failed to leave a will or succession plan.
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