RIL makes offer to buy bankrupt petro-chemical firm LyondellBasel
New Delhi | Sunday, Nov 22 2009 IST
 

Mukesh Ambani-led Reliance Industries Ltd (RIL) has made a non-binding cash offer to acquire a controlling interest in America's bankrupt petro-chemical company LyondellBasell having a market capitalisation of 55 billion dollars.

''A preliminary non-binding offer has been submitted to LyondellBasell to acquire for cash a controlling interest in LyondellBasell upon its emergence from chapter 11 reorganisation,'' RIL said in a statement.

The offer is subject to customary conditions, including conduct of due-diligence, documentation and receipt of creditors support, it added.

Meanwhile, Luxembourg-based LyondellBasell also confirmed through a statement that RIL has submitted the bid for the same.

The offer represented a potential alternative to previously filed reorganisation plan to emerge from Chapter 11 bankruptcy, LyondellBasell, the world's third largest petro-chemical company, said in a statement.

LyondellBasell had filed for Chapter 11 bankruptcy protection in January this year after it could not meet debt obligations as the demand for petrochemicals products plummeted during the global financial crisis and it faced liquidity crisis.

''Management will continue to work with all parties to design an approach that maximises value for the company's creditors through the pursuit of a confirmable plan of reorganisation and enhances the financial strength of the reorganised company,'' it added.

However, both the companies did not disclose the size of the offer in their statements. But, the deal, if successful, will be one of the largest overseas acquisitions by any Indian company and it will create one of the largest petrochemical firm in the world.

At the company's annual shareholders meet last week, RIL Chairman Mukesh Ambani said the firm is aiming at attaining global scale for conventional energy platform and will also invest in new businesses such as retailing and alternative energy.

-- (UNI) -- 22DC4.xml

 

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