India’s Reliance plans to amalgamate petroleum subsidiary

27 February 2009 17:06  [Source: ICIS news]

NEW DELHI (ICIS news)--Reliance Industries Ltd (RIL) is planning to amalgamate its 70.38%-owned subsidiary Reliance Petroleum Limited (RPL), the two companies said on Friday.

The boards of directors of the companies would meet separately on Monday to consider the merger.

Stock market analysts said the deal would help RIL to consolidate the operations of the two companies, potentially transforming it into one of the world’s largest refinery-cum-petrochemicals companies.

The merger would also help the company to enhance its market capitalisation, which had been declining since the onset of the global slowdown, according to the analysts.

The analysts added that if the boards were to approve the proposal, they would recommend the appointment of valuers in order for the companies to agree a share-swap ratio for shareholders.

Industry sources said that should it go ahead, the merger would be the biggest in RIL’s history.

To discuss issues facing the chemical industry go to ICIS connect

By: Naresh Minocha
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly