Indian petrochem giant in big buyout bid
MUMBAI: Reliance Industries Ltd, owner of the world's largest oil-refining complex, bid for bankrupt chemicals and fuel maker LyondellBasell Industries AF, in what may be the biggest acquisition by an Indian company in two years.
The refiner and energy explorer controlled by billionaire Mukesh Ambani rose as much as 3.1 percent in Mumbai trading after offering an undisclosed amount of cash on Nov 21 to buy a controlling stake in Rotterdam-based LyondellBasell. Reliance could pay $10 billion to $12 billion for the closely held company, said Victor Shum, an analyst at Purvin & Gertz Inc in Singapore.
"With one single step they become a very significant global player, whereas Reliance can't get any bigger in India," said Shum, a senior principal at the energy consulting company. "It would instantly expand their presence in the US and Europe and would be a whole lot cheaper than building something new."
