NEW DELHI: Hindustan Petroleum Corp’s plans to acquire Mangalore Refinery and Petrochemicals (MRPL) has hit a cash hurdle, with parent ONGCNSE -0.27 % preferring a cash deal rather than a share-swap, sources aware of the development said.
Oil and Natural Gas Corp (ONGC), India’s biggest oil and gas producer, last year completed acquisition of Hindustan Petroleum Corp (HPCL) for Rs 36,915 crore.
After this takeover, ONGC has two refining subsidiaries — HPCL and MRPL.
Since then, HPCL is keen to get MRPL in its fold citing operational synergies. It has been talking of a combination of cash and share-swap for the deal that will make it India’s third-largest oil refiner.
