The boards of Mangalore Refineries and Petrochemicals (MRPL) and Hindustan Petroleum Corporation (HPCL) are set to take up the proposal for merger of the two companies by August. After the acquisition of majority stake in the HPCL by Oil and Natural Gas Corporation (ONGC), it was expected that ONGC may look at further synergy in business by merging the two subsidiaries.
“The boards of these companies are set to take up the merger proposal within two months,” said Shashi Shankar, chairman of the ONGC. To complete the deal, the HPCL has three options before it. It can either buyout ONGC’s shares or go for a share-swap deal and can go for a combination of both these options. The Mangalore refiner is yet to meet the Sebi norm of minimum 25 per cent public shareholding by August 21.