The government on Thursday approved the merger of Indian Oil Blending Limited with the Indian Oil Corporation saying the merged entity is likely to achieve higher long-term financial returns than could be achieved by the companies individually.
The proposed amalgamation will help the merged entity to achieve size, scale, integration and greater financial strength and flexibility in maximising the shareholders' revenue, it said.
However, the Cabinet, left it to the companies on the date of merger besides authorising them to take follow-up action that would be necessary to carry out the merger.
IOBL is a public company incorporated in 1963 under the provisions of the Companies Act, 1956.
"Keeping in view the identity in business and possible synergies between the IOC, the holding and IOBL, the subsidiary, it is considered that amalgamation of the two companies would be beneficial," the statement said.
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