Vedanta-Hindustan Zinc deal worry may hit divestment plan for FY23

Centre's opposition to the Vedanta-HZL deal is on account of valuation and the deal being a related-party transaction

The Centre’s plan to sell its residual stake in Hindustan Zinc (HZL) could face a stumbling block because of its opposition to the company’s proposed $2.98-billion acquisition of zinc assets from Vedanta.

The Centre’s opposition is on account of valuation and the deal being a related-party transaction.
 

The recent development will likely impact the ongoing divestment plan because the issue has created uncertainties among investors, making them cautious about picking a stake in HZL, a senior government official told Business Standard.
 

The government had expected to sell part of its stake in HZL this fiscal year. The transaction, if executed, could