Oil and Natural Gas Corporation (ONGC) may acquire the government’s 51.11% stake in Hindustan Petroleum Corporation (HPCL). This will be followed up with an open offer to acquire additional 26% from other shareholders of HPCL. The deal for the 77.11% stake would be worth Rs 44,000 crore or around $6.6 billion at current market prices. The deal is a follow-up on Finance Minister Arun Jaitley’s Budget announcement of creating an integrated oil company.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.