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The Union Cabinet today approved the merger / amalgamation of India Oil Blending Limited (IOBL), a wholly-owned subsidiary of Indian Oil Corporation Limited (IOC), with IOC. The date of merger will be decided by the two companies. The Cabinet also authorized the two companies to take follow-up action that will be necessary to carry out the merger.
The proposed amalgamation will help the merged entity to achieve size, scale, integration and greater financial strength and flexibility in maximizing the shareholders’ value. The merged entity is likely to achieve higher long-term financial returns than that could be achieved by the companies individually.
Keeping in view the identity in business and possible synergies between IOC, the holding company and IOBL, the subsidiary, it is considered that amalgamation of the two companies would be beneficial.
IOBL is a public company incorporated in 1963 under the provisions of the Companies Act, 1956, having its registered office at Trombay.
YSR/HS/LV
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