US-based petrochemicals major LyondellBasell, which was once a takeover target for Reliance Industries and has come out of bankruptcy, today announced acquisition of Aurangabad-based SJS Plastiblends.
The Luxembourg-based LyondellBasell, which is into plastics, chemical and refining, did not disclose the value of the deal that is expected to close later this year.
"We have entered into a definitive agreement for takeover of SJS Plastiblends," LyondellBasell chairman and chief executive Bhavesh V Patel said in statement issued from Houston.
He further said "this acquisition will expand our global polypropylene compounds (PPC) manufacturing footprint and allow us to better compete in the long-term growth of the domestic automotive market which globally is the fourth largest market now, with 3 million of annual production."
From late 2009 to early 2010, the Mukesh Ambani-led Reliance was reportedly in discussions with the debt-laden Houston-based company for a takeover.
It was even reported that Reliance had raised USD 763 million through a block deal early January 2010 for the same to take over LyondellBasell.
RIL sweetened the deal from USD 12 billion to USD 13.5 billion but was spurned.
Lyondell had filed for bankruptcy protection in January 2009 as demand dropped for petrochemical products during the global economic downturn.
SJS Plastiblends was set up in 1996 and makes products that improve performance and aesthetics of plastics in automotives. It employs around 60 people at its sole manufacturing site that has an annual capacity of 12,000 tonne of PPC. SJS could not be immediately reached for comments for more details.
Mumbai-based investment bank Singhi Advisors was the financial advisor to the privately held SJS Plastiblends for the transaction.
LyondellBasell, a Fortune-500 company, has been supplying to the domestic market through imports and tolling arrangements since 2009. It has been manufacturing facilities at 55 sites across 18 countries.
