From Plastics News
Mumbai, India - There's still a chance that one of the biggest deals in the history of the plastics industry will come to fruition. Indian petrochemical giant Reliance Industries Ltd is widely reported to have sweetened its offer for LyondellBasell Industries AF SCA to $14 500 million.
Reliance had first made an undisclosed offer for Rotterdam, the Netherlands, based LyondellBasell on 21 Nov. That bid was reported to be around $13 500 million, and would have been for a controlling stake.
The new offer would give Reliance a minority stake, but would give the firm super-voting power to control Lyondell's board, according to a report in The Wall Street Journal.
The new bid would give LyondellBasell creditors the option to take either cash or equity in the company, according to reports that quote sources close to the deal.
LyondellBasell, the world's largest polyolefins maker, had filed for protection from creditors in US Bankruptcy Court in New York in January 2009. The company has been working toward a reorganisation plan.
On 16 Feb, LyondellBasell announced that it had reached an agreement that would pave the way for the company to emerge from Chapter 11. That deal resolved objections to the company's reorganisation plan by the company's unsecured creditors by giving the creditors an equity stake in the new company.
LyondellBasell is the world's largest producer of propylene oxide, used to make polyols for the polyurethane sector.