RIL makes daring bid for MNC petrochemical giant | business | Hindustan Times
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RIL makes daring bid for MNC petrochemical giant

business Updated: Nov 22, 2009 07:37 IST
HT Correspondent
HT Correspondent
Hindustan Times
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India’s largest private-sector company, Reliance Industries Limited (RIL), has submitted a bid to acquire Netherlands-headquartered petrochemicals giant LyondellBasell.

“RIL 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 reorganisation,” RIL said in a statement on Saturday.

If successful, it will be the biggest overseas acquisition by an Indian company, beating Tata Steel’s $12-billion (Rs 55,200-crore) acquisition of Anglo-Dutch steel major Corus in 2007 by a fair margin.

It will also catapult RIL into the elite league of companies that have a market capitalisation of more than $100 billion (Rs 460,000 crore) with a potential consolidated revenue of nearly $80 billion (Rs 368,000 crore).

LyondellBasell had combined revenues of $50.7 billion (Rs 240,000 crore) in 2008, compared with RIL’s $28.85 billion (Rs 133,000 crore).

The company, which had $27 billion in assets and $19 billion in debt, filed for bankruptcy under Chapter 11 of US Bankruptcy Code in January.