The shares of petrochemical giant Reliance Industries (RIL) have zoomed on reports that bankrupt petrochemicals firm LyondellBasell rejected an acquisition bid by the Indian petrochemical giant. RIL is back above the 1000 mark and is now trading at Rs 1012, higher by Rs 28 or 2%, on the BSE. The stock had opened at Rs 979, which also happened to be the day's low, and has touched a high of Rs 1015 thus far.
RIL had bid for the Luxembourg-headquartered Lyondell in November at about $12 billion and raised the amount to $14.5 million a week ago. Investors were, however, concerned that RIL was paying too much for the Rotterdam-based chemicals maker and heaved a sigh of relief when the deal did not come through.
Reliance Industries has interests in petrochemicals, refining, oil and gas exploration and retail, while LyondellBasell is the world’s third-largest chemical maker. A deal between the two petrochemical players would have created a mammoth energy and chemicals conglomerate, with nearly $80 billion in combined revenues.
RIL has been a rank underperformer in recent times, gaining a mere one and half percent against the Sensex's 3% post the Budget and shaving off more than 4% in the past one month against the market's returns in excess of 3%.
