ONGC-HPCL Deal Likely to Happen in Month of July Itself

Oil marketing majors gained in trade yesterday following the Oil Minister, Dharmendra Pradhan's assurance that the Oil and Natural Gas Corporation-Hindustan Petroleum Corporation Ltd (ONGC-HPCL) merger, to create a mega oil public sector undertaking (PSU), will be completed in FY18.

In an interview to CNBC-TV18, RS Sharma, Former Chairman of ONGC and Vidyadhar Ginde, Oil & Gas analyst at ICICI Securities shared their views on the development.

"This deal is likely to happen in the month of July itself, let us wait and watch," said Sharma.

According to Sharma, all the three stakeholders that is the government, ONGC and HPCL will be immensely benefited. "For ONGC, this is the best transaction to happen," he added.

Ginde believes that HPCL won't be affected by this deal in the immediate term and it is likely that their shareholders wont be too happy with the deal.

Speaking about HPCL and Mangalore Refinery and Petrochemicals Limited (MRPL) merger, Ginde said that in terms of the MRPL shareholders, it is the good thing because it reduces the cyclicality of earnings.

From MRPLs perspective, if they are getting merged in a refining and marketing company, it is a much better in the longer-term. HPCL will also probably benefit from it, said Ginde.