The proposed merger of the state- controlled oil companies, both upstream and downstream, can reduce inefficiencies and improve competitiveness but will be an execution challenge apart from being not so good for consumers and competition, says a report.
Though a merger can create an entity that is better placed to compete globally for resources and less vulnerable to shifts in oil prices, it will face significant execution challenges, particularly on the HR integration, addressing overcapacity and getting it backed by private shareholders, Muralidharan R, a director at Fitch said in a report today.
“There will be considerable difficulties in merging a number of entities with differing structures, operational systems and cultures,” he said adding it may not be good for consumers as well. Read More…
Credit By: IndiaToday
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