Merger of Reliance Industries, fuel exporting arm approvedMarch 2nd, 2009 - 12:30 pm ICT by IANS
Mumbai, March 2 (IANS) In one of the largest merger deals in India, Reliance Petroleum will merge with its parent and the country’s biggest company, Reliance Industries, in what the promoters say will create better synergies for them in the hydrocarbons space.
The board of the two companies met here Monday to unanimously approve the merger in the ratio of one share of Reliance Industries for every 16 shares of Reliance Petroleum. The merger will be subject to necessary regulatory and legal approvals.
“This merger follows Reliance Industries’ philosophy of creating enduring value for all our stakeholders,” said Mukesh Ambani, chairman of the $34.7-billion oil-to-retail group. “It is a significant step in our goal to be among the largest global companies.”
The merger, approved before the opening of Indian stock markets Monday, resulted in the shares of Reliance Industries to start trading at Rs.1,249, marginally lower than its previous close, while those of Reliance Petroleum opened higher at Rs.82, compared with Rs.76.20 at close Friday.
The merger will result in a combined crude oil processing of 1.24 million barrels per day, to make the joint entity’s refining capacity the largest in the world in a single location, the two companies said in a statement.