Reliance gets state clearance for IPCL merger

03 September 2007 17:15  [Source: ICIS news]

NEW DELHI (ICIS news)--Reliance Industries Limited (RIL) has cleared all the statutory checks for its proposed merger with its associate Indian Petrochemicals Corporation Limited (IPCL), the company said on Monday.

Separate approval by the Mumbai and Gujarat courts under the Companies Act was required because the two companies are registered in two separate states – Maharashtra and Gujarat. The companies will now file the court approvals with the state company registrars.

The shareholders and creditors of the two companies had earlier given their consent to the merger. The merger proposal was first announced on 10 March.

The amalgamation would improve the cost competitiveness through reduction in overhead expenditure, tax savings, enhanced operational integration and economies of scale, a Reliance source said.

Four companies of Reliance group currently hold a 46.64% controlling stake in IPCL. The group had acquired a controlling stake in IPCL from the government by outbidding two other domestic bidders in May 2002.

By: Naresh Minocha
+65 6780 4359

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