Submitted by :Sujith Bhaskar R

Lyondell Reliance

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Lyondell basell

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Founded in year 2007 by Jim gallogly.

It is an MNC in Netherlands.

It grew through acquisition and operated in five

different continent.

Total human resource employed is around

15000.

The third largest chemical maker.

Its an indirect subsidiary of Lyondell basell

industries AF.

Contd……….

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The total assets of the company was $27 billion and

liabilities around $19 billion in bankruptcy petition.

$ 8 billion was received from the community debtor in

possession.

POSITION OF RELIANCE AND

LYONDELLBASELL

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Lyondellbasell were technology partner with

Reliance for Polypropylene and HDPE .

Enjoys monopoly in the sector.

Lyondell also the largest producer of polyolefin's.

LB is the 2nd largest producer of oxy fuels.

LB is the 3rd largest producer of polyethylene

RIL worlds 7th largest polypropylene maker

RIL is the 4th largest paraxylene and PTA maker.

CONTD……..

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RIL is the 4th largest paraxylene and PTA

maker.

RIL is the 6th largest producer of MEG.

Other Asian players use much costlier naphtha

RIL has limited global presence,(marketing and

distribution )

RIL has 14 major Manu. Facilities mainly in

Maharashtra and Gujarat.

LB has 50 Manu, Facilities in 19 countries.

CONTD…………

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RIL offered cash offer to LB.

Apollo kkr has made an offer to buy the stake o

Financing in 60-40% ratio i.e.. 60% debt and

40%cash.

Ril is planning to $5.5 billion cash reserves to help

fund what would be its largest offshore purchase.

Apollo Management, Ares Management and Kohlberg

Kravis Roberts & Co. are also in cue for hope get their

hand on lyondellbasell.

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VALUE OF ASSETS AND LIABILITIES (DECEMBER 20

,2007)

Reliance industries

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Established in 1966 by Dhirubhai Ambani.

It has more than 3 million shareholders, in the market.

"1 out of every 4 investors in India is a Reliance

shareholder.”

only Indian firm featured in the Forbes's list of "world's

100 most respected companies.”

Human resource employed are 48000.

Contd……….

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RIL has a wide range of products from petroleum

products, petrochemicals to garments(under the brand

name of Vimal).

Reliance Retail has entered into the fresh foods market

as Reliance Fresh and launched a new chain called

“Delight Reliance Retail .”

NOVA Chemicals have signed a letter of intent to make

energy-efficient structures.

Subsidiary companies (RIL):

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Reliance industries have many subsidiary companies;

a) Reliance petroleum

b) Reliance life sciences

c) Reliance industrial infrastructure limited

d) Reliance institute of life sciences

e) Reliance solar limited

Reliance oil and gas

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In 2002 reliance found natural gas in the Krishna

Godavari basin off the coast of A.P and

Vishakhapatnam.

It started production on 1st April 2009.

The gas reserve is 7 trillion cubic feet in size.

Equivalent to 1.2 billion barrels (165 million tonnes)

of crude oil, but only 5 trillion cubic feet are extractable.

Current status of reliance

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Reliance shares went up by 75%.

Gain of 3.4 % in Mumbai trading .

Declining trend in the bonds of reliance on other hand.

Ambani is ready to pay-off Lyondell's shareholders $10.3 in less than 2 years.

Contd…………

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Reliance seeking for asset abroad , to reduce the risk of

investing , mostly in India.

Currently a law suit is filed over natural gas supplies for

which rel.ind is ready to pay $6 to $12 billion for the

stake.

Achievements of RIL

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Tata steel Ltd. is the 1st biggest company which bought Corus group plc for $12 billion.

Reliance is expected to be the biggest acquisition after Tata

Reliance’s takeover of LyondellBasell would be the second-largest chemical acquisition

Contd…………

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The $18.8 billion purchase of Rohm & Hass Co. by Dow

Chemical.

Reliance is the worlds largest oil processing complex.

Two adjacent refineries with capacity to produce 1.24

million barrels of oil a day.

Facts and figures on the issue

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Lyondell chemicals and fuel makers have gone

bankrupt.

Reliance oil refiner and explorer ready to buy the

controlling stake of the company.

Mukesh ambani the controller of the reliance industries

has offered undisclosed amount.

Lyondell asked its creditors to forego $18 billion out of

$27 billion of its debt.

Contd……..

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“Compelling one off opportunity” is the deal type.

Expected revenue to be earned by the these two companies is estimated to be around $80billion .

It will outsize the existing Dow chemical company ,the largest chemical co. in U.S.

Contd …..

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Access to U.S fuel market.

Reliance would become the largest producer of

polypropylene, used in refrigerator casing.

Reliance will receive $12 billion “free cash flow” as its

biggest gas field will reach its total output next year.

Lyondell’s bankruptcy

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Filed for bankruptcy on Jan 06

Has the following debts to pay :

Bonds - $7.06 billion

Loans to mature next year and $20 billion due in

2027

Lyondell asked its creditors to forego $18

billion .

Temporary restrain order to prevent creditors

from taking action against the company.

Contd……………

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The action by the creditors can lead European units into bankruptcy.

Lyondell creditors include :

Deutsche Bank, which holds about 25 percent of outstanding notes due to mature in 2015, and

Money manager Columbus Hill Partners and affiliates, which owns about 17 percent of the notes.

Current sell and

purchase

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Reliance and India's Essar group are currently going into

bidding process on overseas plant.

Royal Dutch shell plc and Exxon Mobil corp.

are selling refining assets , as there is declining

fuel demand and processing margin.

Revenue earned

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FIRMS REVE

NUE

(08)

(BILLI

ON)

%PLAS

TICS

%

REFININ

G

%PETR

OCHEMI

CALS

PRODU

CTS

RELIANCE $32.4 -- 59 36 Gasoline

, diesel,

jet fuel,

additives

,

ethylene,

propylen

e,

plastics

LYONDEL

L

$50.7 35 34 30

Reliance fastnacht on Lyondell's

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Bid proclamation:

Reliance industries announces cash bid for bankrupt Lyondell.

The amount offered is equal to the difference between asset and liabilities

Conclusion

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Reliance if able to acquire his company will become

the world largest and most powerful company in the

world. It will not just give an edge over other firms but

also boost the country economic condition . It will lead

to a mass global transformation of the industry facets

to come in open and take the risk.

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Bibliography

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http://www.bloomberg.com/apps/news?pid=20601080

&sid=axGIUkK8RfZE

http://en.wikipedia.org/wiki/LyondellBasell

http://www.reuters.com/article/idUSN1354539020090

214

http://online.wsj.com/article/SB100014240527487048

88404574549960291606506.html

http://www.lyondellbasell.com/NR/rdonlyres/654A662

D-1870-40AC-831E-

08F5ADFB73C2/0/ProFormaIncomeStatementandEB

ITDApdf5508.pdf

Contd………

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http://www.arabianoilandgas.com/pictures/gallery/Industry%20Trends/olefins_unit_web.jpg

http://www.icis.com/assets/getAsset.aspx?ItemID=22613

http://www.lyondellbasell.com/NR/rdonlyres/B9FF8C00-E583-45BB-9BB5-F00948221B50/0/middle_east.jpg

http://news.google.co.in/news?hl=en&q=reliance+industries&revid=1861666253&resnum=0&um=1&ie=UTF-8&ei=pjglS7XzKYqgkQW73PmnAw&sa=X&oi=news_group&ct=tit

http://api.ning.com/files/pli0Q8*EdCbpvVAAX4zzfzyn-TT8Pll75Nc0QVIe1kaoSAz2KAiVxVWK2kHeOdROtPr6q7yGqdOZjgq*39Qz7b3N7eBM*HKT/ThankyouButterflysss.gif

Contd……..

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http://filecache.drivetheweb.com/mr4enh_lyondell/196

/XK5R4309.jpg

http://www.google.co.in/search?hl=en&source=hp&q=

lyondellbasell+reliance&meta=&aq=1s&oq=lyondell+b

asell

http://chemicals.einnews.com/news/lyondellbasell

http://www.chemicals-

technology.com/features/feature_images/feature5750

1/1-petrochemical-complex.jpg

http://www.topnews.in/files/RIL-logo.jpg

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