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Indian industry giant Reliance Industires is believed to be on the verge of acquiring the Luxembourg-based petrochemicals company LyondellBasell in a deal worth almost US$6 billion.
In a statement released on its website LyondellBasell said that it had received a cash offer from Reliance. The statement did not disclose the value of the offer, but reports from Indian media outlets stated that Reliance had offered an amount just shy of $6 billion.
"This offer is in addition to the previous non-binding equity financing proposals received by the company and represents a potential alternative to the initial plan of reorganisation previously filed by the company,” the statement said.
“Consistent with its fiduciary duties, management will continue to work with all parties to design an approach that maximises value for the company's creditors through the pursuit of a confirmable plan of reorganization and enhances the financial strength of the reorganized company," it added.
LyondellBasell has been one of the highest profile casualties of the sharp drop in process for petrochemicals products in 2009. The company filed for chapter 11 bankruptcy in the US earlier this year when it was unable to meet demands for debt repayments from its creditors. The company has stated that it
is planning a reorganisation that would enable it to emerge from its chapter 11 status.
Reliance Industries is one of the fastest growing companies in India and is tipped by many analysts to become one of the world’s leading energy companies within the next five years. The conglomerate has extensive interests across the hydrocarbons industry including petrochemicals, oil and gas exploration and refining.