RIL offers to buy Dutch company LyondellBasell

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Reliance Industries Ltd has made a preliminary, non binding cash offer to buy Dutch company LyondellBasell, reports CNBC-TV18. LyondellBasel is currently going through the Chapter 11 procedure for bankruptcy and the cash offer will go through on emergence from Chapter 11.

The Netherands-based petrochemicals company said in a statement that it has also received other non-binding equity financing proposals. The statement also said Reliance's offer represented a potential alternative to its previously filed reorganisation plan to emerge from Chapter 11 bankruptcy.

If the offer is accepted, Reliance Industries will enter the USD 100 billion league by revenues. RIL however said that the offer is subject to receipt of sufficient creditor support. The company aims to grow its core business through inorganic expansion. It did not give any assurance that an approach will result in a transaction.

The offer is much in line with RIL's re-organisation plans. At the company's recently concluded Annual General Meeting, Chairman Mukesh Ambani had hinted at global acquisitions. "We are also looking at acquisitions of global assets, which would be part of the growth platform," he said. A recent CNBC-TV18 report, quoting sources, had also said that RIL was scouting to acquire more than one overseas company and was readying a war chest over USD 25 billion for overseas buyouts.