Ruias-led Essar Group will take a decision by June on whether to go ahead with the buyout of three European oil refineries from Royal Dutch Shell Plc, according to a media report.
The proposal is part of the conglomerate's global expansion plans and the two companies had extended their exclusive talks for the planned deal, in November last year.
Essar is studying whether the deal with Shell makes sense now, mainly on account of low refining margins globally in the oil business, group chief Prashant Ruia has said.
"... We would like to wait a while and study it (the proposed deal).
"It's something we want to be 100 per cent sure about when we do it. We have already done a lot of homework on the transaction," Ruia told the Wall Street Journal.
The three Shell refineries, located in the UK and Germany, can process 500,000 barrels of crude oil per day.
The daily said, if the acquisition is done, it would move Essar closer to its target of handling one million barrels per day in coming years.
Essar, currently operates a 280,000-barrel-per-day refinery in Western India, it added.
"We are totally convinced that the margins that are so low right now and won't stay there. We do believe they'll rise," Ruia said.
Essar Group has interests in oil, power, steel, shipping and telecommunications.
