NEW DELHI: State-run Oil and Natural Gas Corporation (ONGC) aims to complete the acquisition of oil marketing company Hindustan Petroleum Corporation by March, the chairman and managing director of the oil explorer, Shashi Shanker said on Saturday. On July 19, the cabinet had approved the sale of its 51.11 per cent in the third largest oil retailer and refiner to ONGC as part of its effort to create an integrated energy behemoth and also to meet the hefty Rs 72,500 crore disinvestment target it had budgeted for this financial year.
“There is an impression that this acquisition decision was thrust upon us. However, that’s not the case. It was announced by the finance minister in the Budget and then they consulted us on what we want. We chose HPCL after considering all the pros and cons and we are confident that we’ll be completing the deal before March end,” Shanker said, declining to comment on the price that ONGC will pay to shareholders, citing that it is being evaluated by the advisors to the deal.
Post acquisition, ONGC will become the first fully integrated state-run oil and gas company with significant upstream and downstream operations with many refineries and over 14,400 retail outlets.