NEW DELHI (Reuters) - India’s most valuable firm, Reliance Industries Ltd, said on Monday it had signed an agreement to acquire assets of Malaysia’s leading polyester producer, Hualon Corp.
“The agreement is an important step towards the acquisition of assets of Hualon. The agreement to acquire is subject to certain conditions and regulatory approvals,” the company said in a statement.
If it goes through, the deal would be Reliance’s second international acquisition in the polyester sector after the takeover of Germany’s Trevira in 2004, the statement said.
Buying the Malaysian assets would help Reliance corner more than 7 percent of the global market for polyester fibre and yarn, it added.
It would increase the firm’s annual capacity by 25 percent to 2.5 million tonnes and raise revenues by $1 billion a year.
Hualon has annual capacity to produce 500,000 tonnes of polyester along with downstream textile manufacturing facilities.