Reliance Industries, India’s largest company by market value, is considering making a multibillion-dollar bid for the American operations of LyondellBasell, the bankrupt petrochemicals group.

Shares in Reliance, which is controlled by the billionaire Mukesh Ambani, India’s richest man, finished up more than 3 per cent at the close of trading in Mumbai after the company confirmed that it was exploring "several interesting opportunities" in the cross-border mergers and acquisitions market.

Among potential targets, the company is looking at the assets of LyondellBasell, in a deal that would probably be worth more than $1billion (£595 million) and possibly as much as $6 billion, depending on the structure, a source close to the process said.

In September, Reliance said that it raised $660 million through a share sale from its Petroleum Trust unit, which analysts said could be a move to boost its acquisition war-chest.

"Acquisitions for Reliance is a logical step. At this stage it is looking at buying out assets rather than building them," said Apurva Shah, head of research with Prabhudas Lilladher, the brokerage.

Reliance had cash reserves of 180 billion rupees (£2.31 billion) on 30 September.

The US operations of LyondellBasell filed for bankruptcy protection in New York in January. The company had taken on billions of dollars in debt obligations a year earlier, when the investor Len Blavatnik led a $12.7 billion leveraged buyout of Lyondell by Basell of the Netherlands.

The Chapter 11 bankruptcy filing included almost 80 units of the company and encompassed its American operations and a European financing arm.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive