Reliance Industries Proffers $12 billion for Lyondell-sources – One of the biggest firm, Reliance Industries is proffering $12 billion to purchase a controlling interest in bankrupt chemical company Lyondell Basell Industries to construct one of the largest petrochemical firm in the world, as per two sources related with the deal.
According to one source, “The offer is in the vicinity of about $10 to $12 billion” whereas another source stated, the deal is near to the upper end of the band. Both the sources refused to get identified as they are not authorized to speak to the media.
In year 2007, Tata Steel had purchased Anglo Dutch Corus steel manufacturer for $13 billion. And now, if this deal is closed, it will be one of the biggest overseas acquirement made by an Indian company.
Last Saturday, Lyondell Basell stated that the Indian energy giant Reliance Industries has built non binding cash offer to purchase a controlling interest and the offer constituted a potential alternative to its formerly filed re-organization plan to come forth from Chapter 11 bankruptcy.
According to Reliance Industries, it has made a preliminary non-binding offer to attain for cash and controlling interest in Lyondell Basell upon its egression from Chapter 11.
One of the sources commenced, “The offer is preliminary and subject to customary conditions including conduct of due diligence, documentation and receipt of sufficient creditor support”. Both Lyondell Basell and Reliance haven’t revealed the size of the deal in their statements.
Bank of America Merrill Lynch is amongst the advisors for Reliance. The company’s objective is to acquire a global scale for its traditional energy platform like refining, petrochemicals, oil and gas explorations etc. and then investing in its new businesses like alternative energy and retailing, as per Chairman of Reliance Mr. Mukesh Ambani said in the annual meeting of shareholders.
In the month of September, Reliance Industries has aroused approx. $660 million in a share sale that analysts were probably to help the firm make accomplishments.
During the global economic downturn, Luxembourg based Lyondell Basell filed for bankruptcy protection in the month of January and was unable to cope up with its debt obligations made after demand dropped for petrochemical products. In addition, the company, owned by investor Len Blavatnik through New York-based Access Industries, took on billions of dollars of debt obligations when an Access Industries-led group bought the company in 2007.
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