ONGC Acquires Indian Government's Controlling Interest in Hindustan Petroleum

Updated 3 years 7 months ago

ONGC will acquire the Indian government's 51% stake in Hindustan Petroleum to form an integrated oil and gas company in hopes of competing with private international oil majors. The acquisition has been approved with a share purchase agreement signed and is expected to be completed by the end of January.

ONGC and the president of India have been engaged in discussions on a potential transaction for purchase by ONGC of the president's shareholding of 51.11% in Hindustan Petroleum in furtherance of the budget announcement by the government of India for creating an oil major which will be able to match the performance of international and domestic private sector companies.

The ONGC board approved the acquisition on January 19th of the entire 51.11% shareholding of the president of India at a cash purchase consideration of INR 473.97 per share with a total acquisition cost of Rs. 36,915 Crore. ONGC has entered into a share purchase agreement with the president for acquiring the 778,845,375 equity shares of HPCL on January 20th. The parties expect to complete the transaction before end of January.