Reliance likely to bid for GE Plastics
11 January 2007
Mumbai: Petrochemicals major and Mukesh Ambani group flagship Reliance Industries Ltd is pursuing a plan to acquire General Electric's plastics business GE Plastics, estimated to cost about $10 billion.
GE Plastics is expected to be put on the block soon and it makes business sense for Reliance, which is seeking a global marketing network to acquire, to seize the opportunity.
While GE is still to announce whether it is planning to sell its plastics business, reports in The Wall Street Journal and the New York Times have helped generate interest among various private equity buyout firms.
Reliance, which has been trying to expand its presence in petrochemicals and plastics businesses across the world, had unsuccessfully attempted to acquire Innovene, the petrochemicals business of the UK energy giant BP last year.
RIL had acquired German specialty polyester manufacturer Trevira for €80 million (Rs 430 crore) a couple of years ago.
Although RIL officials declined to comment, GE Plastics could be a strategic business opportunity for RIL, sources pointed out.
Speculations indicate that Reliance may be looking to bid for GE's plastics business. RIL is determined to be among the leading global companies in the entire petrochemical chain and it is expected to look at both acquisitions and organic growth to achieve that goal.