Reliance-LyondellBasell talks resurface

Business, Company Strategy, India, M&A, Markets, Polyolefins, Technology

By Malini Hariharan (Malini is now joint blogger for Asian Chemical Connections)

Talk of Reliance Industries acquiring LyondellBasell is once again gaining momentum. A report in today’s Economic Times says that the company is close to announcing a major overseas acquisition with the target being part of the assets of LyondellBasell. The announcement is likely to be made on or before Reliance’s annual general meeting on 17 November. Reliance shares rose 3.1% in morning trade.

Citing a banking industry source the report states that the transaction could be around $6bn, nearly double the estimate made by another media report in September.

One my industry sources says that something is brewing and Reliance is on a shortlist of companies that will be participating in LyondellBasell’s reorganisation. The source was unable to give names of others on this shortlist.

Details about the proposed buy are still sketchy and today’s media report, like the previous one, raises more questions than answers. In what form is Reliance likely to participate – will it be by acquiring an equity stake that LyondellBasell’s creditors will soon get through the company’s rights offer? Or will it be an outright purchase of some/all assets? Can it happen before LyondellBasell completes its reorganisation or will Reliance be participating in the reorganisation by buying assets/equity?

One analyst thinks that today’s report of an imminent announcement is a little premature and a major development is likely only after LyondellBasell emerges from Chapter 11.

It is difficult to evaluate how beneficial the deal would be to Reliance without knowing much of the details. There are certainly parts of LyondellBasell that would be a good fit for Reliance – its PP assets, a global marketing and distribution network and the technology portfolio.

Reliance certainly has the cash for a big ticket acquisition. But the company is not known to be very aggressive when bidding for overseas assets and this is one of the reasons why it lost out on acquisition opportunities in the past. Will it be the same story this time?


For Hands That Don't Want To Do Dishes


By Malini Hariharan (Malini is now joint blogger for Asian Chemical Connections)...

Learn more

What the flipping heck is going on?....


By Malini Hariharan (Malini is now joint blogger for Asian Chemical Connections)...

Learn more
More posts
Deep understanding of inland China essential for tracking 2019 slowdown

By John Richardson CHEMICALS companies are at great risk of getting Chinese demand very badly wrong ...

Holding petchem CEOs to account: tackling societal needs the route to success

By John Richardson IF WE all had a dollar for every time we’d heard the phrase, “the growth of t...

Donald Trump’s “Tariff Man” Tweet exposes lack of G20 substance

By John Richardson That didn’t last long, did it? But anyone paying attention to the detail, o...

G20 trade deal is no deal unless a huge gap can be bridged

By John Richardson I PREDICTED that there could well be warm smiles, handshakes and some kind of tra...

Internal combustion engines, car ownership to quickly head the way of horses and carts

By John Richardson THE PICTURE on the left shows the Easter Day Parade in New York in 1900. As you c...

G20 meeting: stakes are high for US petchems, manufacturing in general

By John Richardson YOU CAN  make an argument that President Trump’s trade policies are good for S...

Preserving working capital the key as crisis conditions intensify

By John Richardson PRESERVING working capital is the key for chemicals industry purchasing managers ...

US and China: Intellectual property rights and maybe some historical amnesia

By John Richardson THE SMARTPHONE is a wonderful invention as it allows easy mobile access to the in...


Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more


Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more