State owned company ONGC has announced that by the end of FY18 the company is likely to acquire the central government`s majority stake in the refiner, HPCL. The company at first had plans of the merger of the two state-owned entities but then fixed with ONGC taking over HPCL. This was done as the sale consideration flows to the exchequer in a year the Union budget has set a disinvestment target of Rs. 72,500 crore, reported a news agency.
The deal could be valued at USD 4.5 billion for 51.1% stake in HPCL, the news report added.
Finance Minister Arun Jaitley while speaking at the NDA government’s three years in office on Thursday said that the oil ministry will give the final shape to the proposal to integrate state-owned oil and gas companies. The proposal was announced in the 2017-18 budget.
