Mumbai,Reliance Industries Limited, one of the Indias biggest groups keeps expanding itself globally as well as in the domestic Indian market. Reliance Industries Limited proposed a takeover of LyondellBasell, the third largest independent petrochemical company based in Netherlands last year. However in March, 2010, the company rejected a $14.5-billion takeover offer from RIL. According to the international media, the Netherlands-based company looks positive and expects more bids in the years to come. On being asked if the news is true, nobody was available to comment from Reliance Group. The Senior Vice President, LyondellBasell feels that the failure of RIL to acquire the Dutch firm may not be the end of the story. According to the industry analysts, the opinion of the executives of LyondellBasell can be seen as an attempt to tell RIL that fresh takeover will be beneficial for the company.

According to the reports published in the international media, Anton de Vries, the Senior Vice President, olefins and polyolefins, LyondellBasell was quoted as saying, The bid didnt work out, but I think it may come back in years to come. RIL decision to takeover LyondellBasell came after the company declared itself bankrupt and it was RILs attempt to bring the company back to its status. The reports also reveal that the creditors thought their upside potential would be restricted if the Reliance Industries Limited could have taken over LyondellBasell with majority share to emerge from bankruptcy. LyondellBasell rejected Rs. 66,700 crore offer from RIL as the board of directors opted for restructuring the company instead of giving control to Reliance Industries Limited. The company thought in favour of its creditors as it was their main concern.

Last week, in the 36th annual general meeting, Mukesh Ambani, while addressing the shareholders, looked positive about further expansions and said, Reliance will, of course, explore and seize opportunities elsewhere in the world and plant the Indian tricolour at many places on the global business map. Mukesh Ambani further said that the company is setting up a new plant in Jamnagar which will produce over 1.5 million tonnes of olefin and it will be one of the largest facilities in the world. LyondellBasell declared bankruptcy in January, 2009 with debts mounting to $24 billion and according to the reports, later debt worth $18 billion was converted into equity. In the same year Reliance Industries bid for the takeover in order to take the company out of bankruptcy.

Notes to Editor

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.