Vedanta Group to spend $12 billion to buy state-owned BPCL

Vedanta Group on Thursday informed that it is willing to spend $12 billion to acquire India’s state-owned refiner Bharat Petroleum Corporation Limited.

Published: 14th January 2022 07:37 AM  |   Last Updated: 14th January 2022 07:37 AM   |  A+A-

Bharat Petroleum, Petrol pump, BPCL

Picture for representational purpose (File Photo |EPS)

By Express News Service

NEW DELHI:  Vedanta Group on Thursday informed that it is willing to spend $12 billion to acquire India’s state-owned refiner Bharat Petroleum Corporation Limited. While giving an interview to a foreign news wire service in Riyadh, the chairman of Vedanta Anil Agarwal said the market cap of the company is about $11 billion to $12 billion, so this is the amount of investment we’re looking at. “We’re not going to bid aggressively, but we will put the right price,” said Anil Agarwal.

The government’s plan to privatise BPCL, under which it is planning to sell its entire stake of 52.98%, is in limbo. As per the reports, the country was expecting some global oil majors to participate in the sale. But some bidders are finding it difficult to invest due to global sustainability rules that make it tougher for them to make large investments in fossil fuels.

It has already missed a September deadline to complete the sale of its entire 53% stake in BPCL. The company’s current market value is around `84,827 crore ($11.4 bn).The government has targeted disinvestment worth Rs 1.75 lakh crore in FY22. Therefore, the sale of BPCL, the country’s second-biggest refiner is essential for the government because it needs to raise revenues for its spending programmes. 

Vedanta expects India to open the bids for BPCL in March. The government refused to comment on this issue. Private equity firms Apollo Global Management and I Squared Capital are said to have shown interest in acquiring it.

Bidding likely to open by March 2022?
Vedanta expects India to open the bids for BPCL in March. The government, however, refused to comment on this issue. Private equity firms Apollo Global Management and I Squared Capital are also said to have shown interest in acquiring it.



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