India's Reliance may bid for GE plastics unit-paper
Thu Jan 11, 2007 11:24pm ET
MUMBAI, Jan 12 (Reuters) - India's top petrochemicals firm, Reliance Industries Ltd., is exploring options to bid for General Electric Co.'s plastics business unit, the Economic Times reported on Friday.
Reliance, which is also the world's top polyester yarn and fibre maker, is awaiting for more clarity on the bidding process before it finalises any strategy, the newspaper quoted an unnamed senior company official as saying.
"We are convinced that acquisitions make strategic sense, if we have to grow faster in the plastics division. There are very few such opportunities that come up globally," it quoted the official as saying.
A Reliance spokesman declined comment.
A source had told Reuters on Tuesday that GE, the world's second-largest company by market value, was discussing options for its plastics business with selected parties which could potentially lead to a sale of the unit. For story, please double-click on [ID:nN09428606].
Analysts have valued the unit at up to $10 billion and said buyers could be private equity players or rivals.
"GE Plastics enjoys a high credibility in the global market. More than the physical infrastructure, it is GE Plastic's customer relationships that really matters," the official told the Economic Times.
If Reliance enters the fray and succeeds it could be the biggest-ever acquisition by an Indian company. Indian steel maker Tata Steel Ltd. has offered $9.6 billion to buy Anglo-Dutch steel producer Corus Group Plc.
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