ONGC to buy HPCL stake

NEW DELHI, January 22, 2018 – India’s ONGC has agreed to buy the government’s stake in refiner Hindustan Petroleum Corporation (HPCL), the NOC announced over the weekend.

Shares in ONGC rose about 6.3% on Monday following news of the deal, Reuters reported.

“[The] ONGC Board on 19th January, 2018 considered the proposal and approved acquisition of the entire 51.11% shareholding (778,845,375 equity shares) of the President of India, at a cash purchase consideration of INR 473.97 [USD 7.41] per share with a total acquisition cost of Rs. 36,915 Crore [USD 5.78 billion],” ONGC said in a statement.

“ONGC has entered into a share purchase agreement with the President for acquiring the 778,845,375 equity shares of HPCL (representing 51.11% of HPCL) on 20th January 2018. The parties expect to complete the transaction before end of January 2018.”

The merger between the two companies, designed to create a vertically integrated oil major, has been in the works since early 2017.

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