THE potential bidder for the Grangemouth oil refinery has been revealed as a Canadian businessman, but serious doubt has been raised over the viability of a legitimate offer.
According to The Times, Garth Reid’s Newfoundland company Hudson Reid Inc has been in talks with the oil refinery owner Petroineos, the joint venture between Ineos and PetroChina, about a potential takeover.
It was revealed earlier this week that Stacey Oil, an Aberdeenshire oil equipment firm, had been working with a mystery bidder to try and put together a transaction.
However, it has been reported there are concerns about the viability of the approach after Reid failed to provide proof of funding or annual accounts for Hudson Reid Inc.
According to the business's website the firm has interests in oil and gas, fishing, construction and fuel trading.
Although it is unclear if Reid or any of his associates have ever operated infrastructure that is similar to the Grangemouth oil refinery.
The Times also reported that Reid has conducted most of his communication about the sale through the social media site LinkedIn and a personal email address.
The news outlet also reported that Reid turned down an opportunity to have face-to-face meetings in Scotland with the owners of Grangemouth as he was moose hunting in Canada.
Ineos last week confirmed that Scotland’s only oil refinery would close next year with around 400 jobs set to be lost. Michelle Thomson, the SNP MSP for Falkirk East, raised the prospect of a “serious” prospective bidder for the oil refinery last week.
On Friday she said that she was still bound by a non-disclosure agreement so could not discuss details but said: “I am duty bound to follow all possibilities for such an important industry in my constituency.
“I fully accept that all companies involved will a) do proper due diligence and b) establish the credentials of any potential buyer. I would take a very dim view should any potential buyer not be credible as all it would do is raise the hopes of the workers in my constituency.”
Ineos has reportedly confirmed it has not received any credible bids for the refinery.
The Times said a representative of Hudson Reid Holdings Inc said it was not required to provide accounts as it was a private enterprise and had not been asked to show proof of funding or a business plan.
A spokesperson for the company reportedly suggested the company was still interested in the refinery and had approached PetroChina about buying its shares in Petroineos.
