M&A

8 November, 2009

India's Reliance close to $6 bln overseas buy-paper

MUMBAI, Nov 9 (Reuters) - Indian energy giant Reliance Industries (RELI.BO) is close to a nearly $6 billion overseas acquisition and the likely target is the assets of petrochemicals firm LyondellBasell, the Economic Times reported on Monday, citing an unidentified banker.

LyondellBasell [ACCEIN.UL] is undergoing restructuring under the administration of a U.S. Bankruptcy Court, it said.

Reliance will likely make an announcement before its annual shareholders meeting on Nov. 17, the newspaper said, citing a source close to the development.

LyondellBasell's website showed the company had filed to reorganise its U.S. operations and one of its European holding companies under the Chapter 11 of the U.S. Bankruptcy Code on Jan. 6, 2009 to restructure the company's debts.

"Reliance Industries is reviewing a number of global opportunities for growth in its core business," the paper quoted a public relation agency official as saying on behalf of Reliance.

"The difficult operating environment of the past year has made available several interesting opportunities, where an investment by a strategic operator of industrial assets can add substantial value," the official said.

A spokesman for Reliance was not immediately available for comment. (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)

Source: http://www.reuters.com