After the international media went abuzz last week over Reliance Industries Ltd (RIL) looking to buy Valero Energy Corp, the Indian petrochem major on Monday categorically denied the move.
“While it is, and will remain, the policy of Reliance not to comment on market rumors, in light of the materiality of the rumored transaction, Reliance wishes to dispel the rumors and announce that it is not in discussions with Valero nor otherwise considering an acquisition of Valero,” RIL said in a statement.
It said it was a company policy to not comment on market speculations but made an exception this time. The company said, “Reliance undertakes no obligation to update this statement and intends to adhere to its ‘no comment’ policy in the future.”
The UK’s Daily Mail reported last week RIL might be in talks to buy Valero Energy Corp of the US for $48 per share, at a premium of 85 per cent, valuing the company at a whopping $27 billion. At the end of the last quarter, RIL had cash reserves of around $13 billion. Valero has 15 refineries, with a total crude oil processing capacity of around 2 million barrels per day.
Analysts say RIL’s aggressiveness to acquire assets in North America might have fueled the rumour.
The company has bought stakes in three shale gas projects in the US and is looking at strengthening its asset base in the western world.
RIL shares fell 2.26 per cent to Rs 877.75 on the Bombay Stock Exchange.