Merger with IBP by October: Behuria

Indian Oil Corporation expects to complete a merger with IBP Co Ltd by October. Stating this in a letter to the company affairs ministry, IOC has also submitted an expression of interest for oil blocks and a refinery in Egypt.

"We have received the approval of the stock exchange and the proposal (for the merger) is with the department of company affairs. After their approval, we will call an extraordinary general body meeting to take shareholders' approval for the merger. I think the entire process should be over by September or October," IOC Chairman S Behuria told reporters on the sidelines of a function here today.

The swap ratio approved by the boards of the merging companies is 110 shares of Indian Oil for every 100 shares of IBP. Behuria said Indian Oil might export up to 500,000 tonnes of diesel to Bangladesh in the next financial year.

For 2005-06, a contract of 200,000 tonnes was signed, of which, 150,000 tonnes had already been exported.

Behuria said Indian Oil was looking at setting up nearly 2,000 retail outlets during the next financial year, half of which would be located in rural areas. At present, the company has a network of 12,000 outlets.

At the same function, Petroleum Secretary MS Srinivasan said the government had decided against asking ONGC Videsh Ltd to borrow independently from the market rather than just sourcing its borrowings from the parent body Oil and Natural Gas Corporation.