Energy major Reliance Industries Ltd is out of race for Canadian firm Value Creation, for which it had bid $2 billion. BP Canada has taken the controlling stake of the oil-sands company.
RIL had expressed its desire to buy Calgary-based Value Creation, which holds oil sands assets. Value Creation?’s subsidiary, Technoeconomics, is the owner of a technology, which helps produce oil from sand and upgrade bitumen – a major feed stock for petroleum – at a relatively lower cost. Value Creation Inc’s largest block of leases, Terre de Grace, covers about 290 square miles in the Athabasca region of Alberta. RIL had earlier failed in its attempt to take over bankrupt petrochemical major LyondellBassell. India’s largest private sector company, which is looking to expand its global footprint, has targeted loss-making companies. It is sitting on cash and cash equivalent of Rs 15,960 crore and treasury stock worth Rs 35,000 crore. The company’s share on the BSE closed at Rs 1,066.80, up 39.05% from the previous close.
This deal follows BP?s $7-billion acquisition of Devon Energy Corp assets the previous week.