India approves HPCL, ONGC merger: report
India 
NEW DELHI, July 24, 2017 – The Indian Cabinet Committee on Economic Affairs has approved “in principle” the sale of the government’s 51.11% stake in refiner Hindustan Petroleum Corporation (HPCL) to NOC ONGC, local media reported on Monday.
The merger, which would also involve a transfer of management control, would transform HPCL into the country’s third-largest refiner, Minister of Petroleum and Natural Gas Dharmendra Pradhan told news agency Press Trust of India.
“The proposed acquisition in the oil sector will create a vertically integrated public-sector oil major having presence across the entire value chain,” Minister Pradhan said.
“This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralise the impact of global crude oil price volatility.”
Ministerial-level talks regarding the proposed merger started in March.
Read our latest insights on:
More content from India
Latest news and features
