China to buy Petrochemics India – Reuters
India is expected to buy about 10% of Petrochemics Indian Ltd, the world’s biggest petro-chemicals company, after it announced its acquisition of petro chemicals company Manali Petroleum Corp. Reuters article The Indian government on Thursday announced its intention to buy Petrochemists India Ltd., the world’ s largest petro chemical company.
India will pay $1.3 billion for the $2.2 billion transaction, according to a government statement.
Petrochemis India will retain its stake in Manali Oil and Gas Ltd, which is a unit of Petronas Petrol and Petrochemicals India Ltd.
The deal will also create an integrated supply chain for the petro companies, the statement said.
The government also said it will “increase its financial stake in Petrochemisti India through its stake sale.”
The deal is expected at the end of this year.
India is India’s second-biggest oil and gas producer, with reserves of 1.1 trillion barrels.
The country’s government has also been buying stakes in Petrochemical Indian Ltd.
It is also India’s largest oil and natural gas producer.
The sale of Petrochemical will give the government greater leverage to increase its stake ownership in the petrol companies, which have struggled since the collapse of the rupee.
The rupee fell by 25% to 74.55 US cents on Thursday.
The price of crude oil fell by $0.6 per barrel to $45.40 a barrel in New York, as crude oil futures fell by nearly half a cent to $49.45 a barrel.