ONGC to acquire Tide Water Oil Company

New Delhi, Apr 16 (UNI) Oil and Natural Gas Corporation Ltd (ONGC) Chairman and Managing Director Subir Raha today said it will acquire lube -maker- seller Tide Water Oil Company.

ONGC which is entering fuel retailing business through ONGC Values Ltd plans to open several outlets by December, will buy Andrew Yule's 22.22 per cent share in Tide Water Oil Company.

Sources said the takeover is subject to Nippon Oil continuing its existing agreement with Tide Water Oil on providing technology and licensing/branding rights.

ONGC is understood to have carried out technical, legal and financial due diligence. The company has offered to purchase Andrew Yule's equity in tide water oil on the basis of Securities Exchange Board of India (SEBI) pricing formula for open offer.

ONGC has said that for the takeover financial institutions led by Life Insurance Corporation (LIC) and United India Insurance Co, Ltd (UIIC), who hold substantial stake in tide water oil, should vote along with ONGC so that the country's largest oil producer would have exclusive management control of the company.

The corporation has also set a pre-condition that Nippon Oil Co should consent for continuity and extension of existing agreement with tide water oil, including licensing/branding rights.

UNI/RT MP RS1622