RIL loses bid for Canadian firm

In a second setback to its global acquisition plans in less than a month, Reliance Industries (RIL), India’s largest company by market capitalisation, has lost out on its $2-billion takeover bid for Calgary-based Value Creation.

RIL lost the deal to British energy major BP Canada, which has taken a controlling stake in Value Creation for around $1.2 billion. The debt-laden Value Creation has substantial reserves of the oil-rich sand deposits covering around 430 square miles.

Just two weeks ago, Netherlands-based LyondellBasell Industries had rejected RIL’s $14.5 billion bid. RIL had upped its offer price twice — from $12 billion in November to $13.5 billion in January and then to $14.5 billion in February.

RIL had cash reserves of Rs 16,280 crore at the end of the last quarter. It had also raised Rs 9,330 crore since September 17 last year, from three tranches of treasury-stock sales. RIL quickly needs to deploy the cash it’s sitting on.