By Malini Hariharan
Reliance Industries will take a call today on submitting a final bid for LyondellBasell, says this report from CNBC TV18.
The report, quoting unnamed sources, adds that Reliance may be having second thoughts about the acquisition. Key concerns are said to be LyondellBasell’s high debt, potential liabilities if it tries to shut some older facilities and integration and management issues.
Some of the concerns appear surprising. LyondellBasell was known to have a high debt burden though it is possible that due diligence has thrown up some previously unknown facts. Closure of any plant in the US would be expensive and time consuming. And integration should have been a worry right from the start especially as LyondellBasell has been put together through so many mergers and acquisitions over the years.