Global petrochemicals major LyondellBasell on Monday rejected a multi-billion dollar takeover offer from Indian giant Reliance Industries, preferring its own restructuring plan to exit bankruptcy.
LyondellBasell on Wednesday said it has won the US bankruptcy court's approval for reaching a settlement with its creditors, paving the way for the chemical giant to emerge from bankruptcy.
Global petrochemical major LyondellBasell Industries, for which Reliance Industries has made a preliminary bid, has entered into an agreement with Hyundai Engineering Plastics for manufacturing certain products in India.
In its multi-billion-dollar acquisition pursuit for LyondellBasell, the Mukesh Ambani-led Reliance Industries engaged 'hundreds' of advisors and personnel to access thousands of documents related to the proposed deal, which was rejected by the Luxembourg-based bankrupt chemicals major.
LyondellBasell had rejected a $14.5-billion takeover offer from RIL in March.
Amid reports that Indian corporate giant Reliance Industries was mobilising funds for its acquisition, global petrochemical major LyondellBasell has said it has not yet received a final bid.
Reliance Industries' $14.5 billion bid for LyondellBasell may be rejected by the creditors of the bankrupt Dutch company, a media report said.
Global petrochemical major LyondellBasell on Friday said it will raise $3.2 billion (nearly Rs 147.45 billion) through debt and issue of securities on private placement basis, which will be used by the company to come out of bankruptcy.
Reliance Industries Ltd (RIL), in its efforts to gain control over LyondellBasell, is looking to team up with the unsecured creditors and bond holders of the bankrupt Dutch petrochemicals giant.
Reliance Industries has offered $13.5 billion to buy LyondellBasell Industries, 12.5 per cent more than its previous offer, and may sweeten it further to get control of the bankrupt petrochemicals firm.
Reliance Industries may make a firm bid to acquire bankrupt chemicals and fuel maker LyondellBasell Industries AF in February 2010 after $20 billion of debt owned by the troubled firm is restructured.
The foreign acquisitions are being looked at to strengthen RIL's core businesses like petrochemicals, polymers and refinery, sources said, adding that the company has found that the economic downturn has created some right-valued acquisition opportunities.
8 CEOs on the list are female, and they far outpace the median pay for the Equilar 100 as a whole
Deals worth nearly $17 billion have got cancelled including -- the $14.5 billion Reliance-LyondellBasell deal, the $2 billion Reliance-Value Creation transaction, the $12 million PVR-DT Cinemas deal and the $130 million Wockhardt-Abbott Laboratories deal.
Mukesh Ambani-controlled Reliance Industries is expected to buy out a fifth of LyondellBasell's $27 billion gross debt and seek a rollover of the balance after acquisition, as a step towards gaining the confidence of creditors in its plans to acquire the world's third largest petrochemical company, sources familiar with the developments said.
The country's most valued firm RIL's bid to acquire a majority stake in bankrupt petrochemical group was called off by LyondellBasell after the latter found the price offer was undervaluing the company.
The NSE Nifty has closed at 4,888, down 28 points.
Indian acquisitions have dropped to $27.3 billion in 2009.
State-owned ONGC is talking to world's leading chemical firms, including Itochu Corp of Japan and the two UK-based companies -- Ineos and Lyondell Basel -- for a strategic partnership in the Rs 12,440-crore (Rs 124.40 billion) petrochemical plant, which one of its units is building at Dahej in Gujarat.
Reliance closed at Rs 2,195, higher by 3.3% on the BSE, after having placed a bid for a controlling interest in LyondellBasell Industries.
"Indian-Americans are an 'organic bridge' between the world's two largest democracies," he said.
US-based Apollo Global has picked up stake in Indian firms which are not doing that well financially.
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