HPCL to acquire MRPL in 2018

New Delhi Nov 2: Leading oil refinery company Hindustan Petroleum Corp Ltd (HPCL) may soon acquire Mangalore Refinery and Petrochemicals (MRPL) in a move to become the second largest refinery.

Sources said that the deal may take place once Oil and Natural Gas Corp (ONGC) acquires entire 51.1 % stake in HPCL.Currently, ONGC would acquire the stake in an oil refinery for Rs. 35,000 crore and will have two refineries HPCL and MRPL.

MRPL is a subsidiary of ONGC as it owns 71.63 % and HPCL owns
16.96 % stake. Officials said that "it does not make economic sense to have two separate subsidiaries for the same business. And so the logical move would be to integrate MRPL with HPCL".



Experts predict that the deal can be wholly based on cash worth RS 16,000 cr or HPCL would swap shares with ONGC.

Earlier the union cabinet has approved the acquisition of HPCL by ONGC as part of the process to consolidate oil majors in the country so that economies of scale can be acquired.