New Delhi, Apr 28: State-owned Indian Oil Corporation today said it would merge with its over 53 per cent subsidiary IBP. The IOC board, which met here today, has in-principle approved and recommended to the government the merger of IBP with IOC, M S Ramachandran, IOC chairman, said. "We are going to merge it by offering the existing shareholders of IBP shares of IOC in a ratio that will be decided after government's approval of the proposal," he said. Government approval is required because the its (government's) equity in IOC would be marginally diluted due to share-swap. "As per our calculations, offering 46.42 per cent of IBP shareholders IOC's shares will dilute government equity very marginally by about one to two per cent," he said.
Ramachandran said IBP was being merged with IOC as both market identical products in similar markets, and it would be much better to have both companies under one umbrella instead of running them separately. He, however, indicated that IBP would be retained as a separate brand as it had definite advantages. IOC owns 53.58 per cent share in IBP. Bureau Report.