ONGC has veto in Cairn deal: Sharma
New Delhi, Aug. 24: The Union commerce minister, Mr Anand Sharma, said on Tuesday that ONGC should have the last word in Vedanta Resources proposed acquisition of Cairn India. He is the latest to add his voice to the oil ministry’s stand that ONGC’s interests should be taken care of in the Cairn-Vedanta deal.
“It is not a question of a regulatory hurdle it is a major decision which has to be taken. We are very clear that when it comes to oil and gas that these are national resources and this is what even the Supreme Court has said,” said Mr Sharma. He said that the oil ministry and ONGC will have to take a view.
The PSU oil companies have been asked by the government to discuss if they can launch a counter offer to Vedanta Resources Plc’s $9.6 billion offer to buy majority stake in Cairn India. However, some PSU companies believe that Vedanta has paid a good amount for the Cairn India stake and are hesitant to offer a counter bid.
Analysts point out that it would be better for these PSUs to to look for assets overseas as Cairn India will be selling its crude from its discoveries only in India.
Post new comment