Reliance to make first major overseas acquisition?

03-Nov-06

Reliance Industries Limited (RIL) seems poised to make India's first major acquisition in oil exploration and production, and petrochemical sectors. Information indicates that RIL is in discussion to acquire Premier Oil, a United Kingdom (UK) based company, and the Belgian division of British Petroleum (BP). The combined size of the two deals is expected to be at least US$4 bln (Rs 18,000 crore). Premier Oil, listed on the London Stock Exchange and engaged in the exploration and production business, has a current market capitalisation of US$2 billion. The petrochemical division of BP is also expected to be valued around US$2 billion. No details of deal structures and their funding pattern are yet to be known, but the acquisitions could be made through a leverage buyout.