The Hindu : Front Page : RIL bids for world’s third largest chemical firm

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Monday, Nov 23, 2009
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RIL bids for world’s third largest chemical firm

Oommen A. Ninan

MUMBAI: Reliance Industries Ltd (RIL) has confirmed its interest in bidding for the U.S.-based company LyondellBasell, the third largest independent chemical company in the world. If it succeeds, this will be the largest ever global acquisition by an Indian firm. It, however, did not disclose the offer size.

“In response to the statement issued by LyondellBasell, Reliance confirms that it has submitted to LyondellBasell a preliminary non-binding offer to acquire, for cash, a controlling interest in LyondellBasell upon its emergence from Chapter 11 pursuant to its plan of reorganisation,” RIL said in a press release.

The successful bidder for LyondellBasell would be decided by the U.S. bankruptcy court.

LyondellBasell, which had a market cap of $55 billion in 2008, filed for Chapter 11 protection (refers to bankruptcy) in the U.S. in January 2009 - impacted by high leverage, adverse market conditions and liquidity issues.

“The offer is preliminary and subject to customary conditions, including conduct of due diligence, documentation and receipt of sufficient creditor support,” RIL said.

RIL is reviewing a number of global opportunities for growth in its core business.

The biggest-ever global deal involving an Indian company so far is the Tata Steel’s acquisition of European Corus for $12 billion.

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