RIL to acquire Malaysian polyester major Hualon

Mumbai, Sep 10: Reliance Industries Limited (RIL), country's largest private sector company, will acquire Malaysian polyester producer Hualon for an undisclosed amount.

In a communique to bourses, RIL today said it has reached an agreement with the Malaysian Firm and is waiting for the clearance of regulatory approvals for the completion of the deal.

The acquisition has come closely after the RIL-IPCL merger and is the second international acquisition in the polyester sector of RIL after the successful takeover of Trevira in Germany in 2004.

Hualon, which is one of the leading polyester producers in Malaysia, with a manufacturing capacity of half a million tons per annum along with downstream textile manufacturing capabilities, is mainly engaged in the production of fibre, yarn and resin.

When contacted, sources in RIL said that the acquisition will be completed as soon as the Company gets regulatory clearance in Malaysia.

Acquisition of Hualon, which is one of the largest exporters in Malaysia, is expected to help RIL to consolidate its position as the world's largest polyester manufacturer with 2.5 million tonne capacity.

This will bestow RIL with more than 7 per cent of the global market share in polyester fibre and yarn, up by nearly 25 per cent from its current capacity.

''Reliance celebrates its silver jubilee in polyester business with the acquisition of Hualon. The integrated assets of Hualon will help RIL to strengthen its position in the entire textile value chain. This acquisition reiterates our strong commitment to the growth of polyester,'' said RIL Chairman Mukesh Ambani in a statement today.

The deal is also expected to enable Reliance's global aspirations by providing easy access to other western markets.

Established in 1989, Hualon has 250,000 spindles for spun yarn manufacturing, 5,800 shuttle-less looms for weaving along with processing facilities. Apart from this, the Company also has a nylon filament manufacturing capability.

RIL's scrips in the Bombay Stock Exchange rose to Rs 1,984, up by Rs 22.60 from its past close of 1961.40. Shares opened at Rs 1,945 and marked a day's high of Rs 1,994 during the intra-day.

UNI