27 February 2009 17:06 [Source: ICIS news]
NEW DELHI (ICIS news)--Reliance Industries Ltd (RIL) is planning to amalgamate its 70.38%-owned subsidiary Reliance Petroleum Limited (RPL), the two companies said on Friday.
The boards of directors of the companies would meet separately on Monday to consider the merger.
Stock market analysts said the deal would help RIL to consolidate the operations of the two companies, potentially transforming it into one of the world’s largest refinery-cum-petrochemicals companies.
The merger would also help the company to enhance its market capitalisation, which had been declining since the onset of the global slowdown, according to the analysts.
The analysts added that if the boards were to approve the proposal, they would recommend the appointment of valuers in order for the companies to agree a share-swap ratio for shareholders.
Industry sources said that should it go ahead, the merger would be the biggest in RIL’s history.
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