RIL mulls $12 b bid for petro company

 
Reliance and LyondellBasell have issued statements confirming a preliminary non-binding offer to acquire ‘a controlling interest’ in the world’s third largest independent chemical maker. Though Reliance Industries did not disclose the offer size, industry sources said bid for LyondellBasell would be over US$12 billion, making it the largest ever acquisition by an Indian firm.

The biggest-ever deal involving an Indian company is Tata Steel’s takeover of European Corus for US$12 billion. The said deal would act as a catalyst to drive India Inc’s shopping spree and would also give a fillip to the slugging M&A activity of the country. LyondellBasell last year had US$50.7 billion in revenues and employed 15,000 people across 19 countries. Reliance is the world’s biggest producer of polyester yarn and fibre and is one of the top 10 producers of petrochemical products.

LyondellBasell’s US operations and one of its European holding firms filed for bankruptcy protections this year, weighed down by a massive debt and declining demand. The RIL-LyondellBasell deal may take a few months to conclude. The successful bidder for LyondellBasell, would be decided by the US bankruptcy court.