The central government would sell its 51% stake in HPCL to Oil and Natural Gas Corporation to create an oil giant to compete with global rivals, according to a Cabinet decision announced on July 19. The process of the merger is expected to take a year. The deal is exempted from an open offer.
However, the brand of HPCL will stay post merger with ONGC. HPCL will only become a subsidiary of ONGC and its board will continue to be in place.
Foreign brokerage CLSA in a note said the government would be the only gainer in the merger, as it would allow the government to keep effective control of HPCL via ONGC.
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HPCL-ONGC merger okayed
By IndianMandarins - 2017-07-19 21:30:51
The central government would sell its 51% stake in HPCL to Oil and Natural Gas Corporation to create an oil giant to compete with global rivals, according to a Cabinet decision announced on July 19. The process of the merger is expected to take a year. The deal is exempted from an open offer.
However, the brand of HPCL will stay post merger with ONGC. HPCL will only become a subsidiary of ONGC and its board will continue to be in place.
Foreign brokerage CLSA in a note said the government would be the only gainer in the merger, as it would allow the government to keep effective control of HPCL via ONGC.
