Financial Daily from THE HINDU group of publications
Friday, Aug 19, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Home Page - Petroleum
Corporate - Mergers & Acquisitions


Cabinet seeks more details on KRL merger with BPCL

Our Bureau

New Delhi , Aug 18

THE Finance Minister, Mr P. Chidambaram, today said that the Union Cabinet has sought more information on the proposed merger of Kochi Refineries Ltd (KRL) with BPCL.

The Cabinet is understood to have taken up the issue but no decision could be arrived at.

The boards of the two companies had approved a swap ratio of 4:9 in January this year.

BPCL holds 54.81 per cent stake in KRL, which operates a standalone refinery that process 7.5 million tonnes a year.

Post-merger, BPCL is expected to gain an advantage of high refining profit margins.

As part of the merger proposal, the Petroleum Ministry had sought approval for transferring BPCL's shares in KRL to a trust.

These shares could be sold latter and used for financing the company's expansion programmes.

However, the Finance Ministry had opposed the move to transfer the shares to a trust and proposed that BPCL should extinguish its shares in KRL - a move that would have resulted in the Government's holding in BPCL being reduced to 60.58 per cent.

Meanwhile, the Cabinet has given its approval for removal of drugs and pharmaceuticals from the list of industries for which industrial licence is compulsory, since drugs and pharmaceuticals are governed by a different Act.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Punjab National Bank TMB Ltd

Stories in this Section
PSBs wary of dealing with Chinese banks


Cabinet seeks more details on KRL merger with BPCL
Tata Steel vs POSCO - A tale of two MoUs
FDI in wholesale: Many players, but low inflows
Sensex crosses 7,900 intra-day, closes lower in volatile trade
WTO trade facilitation talks: `Address concerns of exporters in developing countries'
Mauritius firm told to cut stake in Centurion to 10 pc — RBI sets 90-day deadline to recast holding
Investment in equities: 2004-05 story
FIIs Rs 44,123 cr, MFs Rs 448 cr



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line