Really Hope and Pray that this deal goes through. The two other companies left will be Dow and Dupont in petrochemical sector.

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http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/RIL-submits-bid-to-acquire-LyondellBasell-of-US/articleshow/5255606.cms


RIL submits bid to acquire LyondellBasell of US


21 Nov 2009, 2000 hrs IST, ET Bureau & Agencies

MUMBAI: Country's most valued firm Reliance Industries on Saturday said it has submitted a bid to acquire US petro-chemical giant LyondellBasell Reliance Industries' KG-D6 facility
World's top oil exporting countries
World's top 10 oil producers
World's largest refining companies

that has a market valuation of $55 billion.

\"RIL confirms that it has submitted to LyondellBasell a preliminary non-binding offer to acquire for cash a controlling interest in LyondellBasell upon its emergence from chapter 11 reorganisation,\" RIL said in a statement.

If successful this will be the biggest acquisition by any Indian company overseas. LyondellBasell is the world's third largest petro-chemical company, with a market capitalisation of $55 billion.

It had filed for Chapter 11 protection in January 2009 after it was impacted by high leverage, adverse market conditions and liquidity issues.

\"The offer is preliminary and subject to customary conditions, including conduct of due-diligence, documentation and receipt of creditors support,\" RIL added.

LyondellBasell has confirmed having received a non-binding offer from RIL but did not disclose the bid price.

LyondellBasell, according to records on its website has more than 15,000 employees worldwide. But while RIL may be hoping to close the deal soon, it may take a while, almost three to five months, as it would go through the tedious bankruptcy laws according to analysts. ET had reported in its edition dated 9 November that RIL was interested in LyondellBasell and was looking to close the deal soon.In an exclusive interview to ET Now some weeks back, RIL chairman Mukesh Ambani had said: \"Well we look at all opportunities everywhere and its a global world. For us the criteria is not whether it is in India or outside India. The criteria are what value we can add.

Perfect Timing

RIL's move to acquire the assets at this juncture is also being viewed by some industry analysts as well-timed. Having commissioned its two mega domestic projects, the company is now in a position to use its cash reserves for a strategic buy that will add to its bottom line. \"It is like a statement by RIL that the group is ready for its next big value-addition,\" an oil industry analyst said.

Worldwide there is a glut in refining capacity and it may be a while before demand really picks up. Sitting on huge cash reserves, (as on Sept 30, RIL had reserves of $4 billion), it makes imminent sense for RIL to build on its petrochemical strengths.

Also, this acquisition, if it were to go through, would be a value for money deal as Lyndoll Bassell is currently facing a liquidity crunch and RIL could be the financially sound white knight, an energy analyst with one of the leading consultancy companies said. The petrochemical industry has been going through a tough time over the past few months as demand slumped even as crude prices spiked last year.

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Sunny Leone a true Canadian DESI now back in India !.