Reliance Industries Ltd (RIL) confirmed its interest in bidding for the U.S.-based company, LyondellBasell, the third largest independent chemical company in the world. If RIL succeeds in buying the bankrupt firm, this will be the largest ever global acquisition by an Indian firm. RIL, 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 reorganization,” 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 US$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.
Reliance is reviewing a number of global opportunities for growth in its core business. “This review is ongoing and there can be no assurance of the outcome with respect to any of the opportunities under review, including with respect to LyondellBasell, or that any approach made in connection with such opportunities will result in a transaction.” RIL added.