Merger of subsidiary with parent company always beneficial: Indian Oil Corporation

Merger of subsidiary with parent company always beneficial: Indian Oil Corporation

Indian Oil Corporation is holding talks with stakeholders on the merger of its subsidiary Chennai Petroleum Corporation Ltd, as standalone projects are not viable under prevailing market conditions, a top company official said. IOC has been mulling the merger of CPCL with it, over the last few years. “Essentially, any standalone project is not viable in current market conditions. Because our business is highly volatile. The volatility affecting any of these standalone refiners in much more significant way than those which are integrated (with parent company),” Indian Oil Corporation, Chairman, B Ashok told reporters here. “It does not make sense for standalone businesses now in the current context of very high volatility.. We believe a merger of a subsidiary with parent organisation will always be beneficial,” he said. Read More…

Credit By: Financial Express

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