HPCL likely to acquire MRPL

In a bid to become the second largest oil refiner in India, Hindustan Petroleum Corp (HPCL) is expected to acquire ONGC ’s subsidiary Mangalore Refinery and Petrochemicals (MRPL) in a share swap deal.     
   
The merger is likely to take place post ONGC completes the acquisition of HPCL in a cash deal by the end of the year, reported a leading news outlet. Presently, ONGC holds 71.63 per cent stake in MRPL whereas HPCL owns 16.98 per cent stakes in the Mangalore-based company.
 
By the end of the year, ONGC is expected to acquire 51.11 per cent stake in HPCL for around Rs. 35,000 crore and will have two refineries, HPCL and MRPL. HPCL is expected to add 23.8 million tonnes of annual oil refining capacity to ONGC while MRPL will add 15 million tonnes to the oil refinery major.    
 
In Tuesday ’s trade, ONGC hit an intraday high of Rs. 192 per share and an intraday low of Rs. 184.70 per share on BSE. The stock also reported a spurt in volume by more than 2.02 times on Tuesday. The stock closed at Rs. 191.35 per share, higher by nearly 3 per cent on BSE.