Reliance Industries Ltd. is to acquire the polyester assets of Hualon Corporation (M) Sdn Bhd in Malaysia. RIL has reached an agreement with the Receivers and Managers of Hualon Corporation, to acquire all assets of Hualon for undisclosed amount. The acquisition is subject to certain conditions and regulatory approvals.
This acquisition, upon completion, will be the second international acquisition in the polyester sector of RIL after the successful take over of Trevira in Germany in 2004. The deal will strengthen RIL's position as the world's largest polyester manufacturer with 2.5 million tons capacity, 25% up from the current capacity and increased in revenue by around US$1 bln. This acquisition will also bestow RIL with more than 7% global market share in polyester fibre and yarn.
The integrated assets of Hualon would help RIL to strengthen its position in the entire textile value chain and RIL would graduate to become a solution provider to the global textile industry. The acquisition will also help to achieve global vision of Reliance polyester sector through easy access to other Western markets.