Govt to sell entire stake in HPCL to ONGC
24th July, 2017Category:
The Cabinet Committee on Economic Affairs (CCEA) has given the approval to sell off government's 51.11% stake along with management control in HPCL (Hindustan Petroleum) to ONGC. The combined market value of ONGC and HPCL would be USD 42 billion, comparable to Russian energy giant Rsoneft's USD 56 billion. The proceeds from the deal will cover about 40 per cent of the government’s divestment target of Rs 72,500 crore for 2017-18. ONGC Chairman Dinesh Sarraf said the shareholders of both companies would gain from the deal.
HPCL will continue as PSU after the acquisition. HPCL will add 23.8 million tons of annual oil refining capacity to ONGC's portfolio, making it the third-largest refiner in the country after Indian Oil Corporation (IOC) and Reliance Industries.
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