Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Friday said its board has approved the merger of the unit that operates the Bina oil refinery in Madhya Pradesh with itself.
"The Board of Directors of the company (BPCL) at its meeting held on October 21, 2021, has considered and approved the Scheme of Amalgamation of Bharat Oman Refineries Ltd with the company," the firm said in a stock exchange filing.
BORL is currently a wholly-owned subsidiary of BPCL. It operates a 7.8 million tonnes a year capacity oil refinery at Bina in Madhya Pradesh.
The merger follows BPCL recently buying out partner Oman Oil in BORL.
BPCL operates a 12 million tonnes capacity oil refinery at Mumbai and another 15.5 million tonnes capacity unit at Kochi in Kerala.
The merger will provide "cost optimisation in the purchase of crude oil for the refineries," BPCL said, adding it would also provide optimisation in production planning/product mix for the refineries.
More efficient space management, integrated asset management and de-duplication of processes wherever possible across refineries will be another benefit.
Also, the combined inventory management and availing of easier financial support for business will be possible, BPCL said.
"No consideration in form of cash or shares is proposed to be issued as consideration for amalgamation of BORL with BPCL," the filing said.
When the amalgamation becomes effective, all the employees of the BORL shall become employees of BPCL on terms and conditions not less favourable than those on which they are presently engaged with.
"On the Scheme becoming effective, (BORL) shall stand dissolved without winding up and the board and any committees thereof shall without any further act, instrument or deed be and stand discharged," it said, adding on and from the effective date, the name of BORL shall be struck off from the records of the concerned Registrar of Companies (RoC).
Published - October 22, 2021 06:12 pm IST
