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.
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.
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 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.
Reliance Industries' $14.5 billion bid for LyondellBasell may be rejected by the creditors of the bankrupt Dutch company, a media report said.
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.
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.
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.
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.
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.
8 CEOs on the list are female, and they far outpace the median pay for the Equilar 100 as a whole
US-based Apollo Global has picked up stake in Indian firms which are not doing that well financially.
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