Is Reliance Industries Ltd (RIL) eyeing the olefins and derivatives business of BP? Corporate India is abuzz with talk that the Mukesh Ambani-controlled RIL is set to launch a takeover bid for the $15 billion (Rs 65,000 crore) North American unit of BP.When contacted, a Reliance spokesperson did not comment on the rumours. It is not yet know if bourses have asked Reliance for a clarification on a recent media report.The takeover, if it materialises, is expected to cost Reliance a whopping $4-5 billion. If RIL clinches the deal, it will be the largest foreign takeover by an Indian company, catapulting it to the big league in the global petrochem sector.In fact, the market was flooded with rumours about a mega takeover by Reliance for the past one month. RIL shareholders and market players were expecting Mukesh Ambani to announce the takeover at the company’s AGM earlier this month. In fact, the RIL share also then made huge gains on expectations of this mega takeover.BP Plc, the world’s second-largest oil group by M-cap, rebranded its olefins and derivatives plastics business this year ahead of a planned sell-off.The new unit, called Innovene, had sales of over $15 billion last year, is the fourth-largest petrochemicals firm in the world and is headquartered in Chicago. It is expected to float a minority share towards the end of the year.BP created the subsidiary in April 2004, and said it planned to either sell the new company or launch an IPO. This unit, with global headquarters in Chicago, has 8,000 employees.Analysts said RIL has enough cash reserves to fund a mega takeover abroad. ‘‘It has a strong balance sheet. It makes sense for RIL to go for a takeover abroad,’’ said an analyst.
