India's Reliance announces bid for LyondellBasell
MUMBAI: India's private sector energy giant Reliance Industries Limited has announced a cash bid to buy a controlling stake in bankrupt petrochemicals firm LyondellBasell Industries.
"The offer is preliminary and subject to customary conditions including conduct of due diligence, documentation and receipt of sufficient creditor support," Reliance said in a statement issued Saturday.
Reliance did not say how much it had offered LyondellBasell, but the Times of India on Sunday quoted an unidentified banker as saying the company would have to pay at least 12 billion dollars.
The amount was equal to the difference between LyondellBasell's assets and liabilities, the Times report said.
If the deal went through, it would catapult Reliance into the big league of global petrochemical companies, the paper added.
The company, owned by industrialist Mukesh Ambani, said it was reviewing opportunities for growth.
"There can be no assurance of the outcome with respect to any of the opportunities under review, including with respect to LyondellBasell," it added.
Luxembourg-based LyondellBasell filed for bankruptcy protection in the US in January, shielding it from its creditors and giving it time to restructure its businesses.