Wednesday, February 1, 2023
HomeIndiaIndia stalls privatisation of state-owned Bharat Petroleum as bidders exit

India stalls privatisation of state-owned Bharat Petroleum as bidders exit

There was only one potential buyer left in the fray for purchasing the government’s 53% holding in the company. India didn’t want to proceed with a single bidder, official said.

Text Size:

India has stalled the privatization of state-owned refiner Bharat Petroleum Corp. as most bidders walked out of the process, according to an official with direct knowledge of the matter.

There was only one potential buyer left in the fray for purchasing the government’s 53% holding in the company. India didn’t want to proceed with a single bidder, the official told reporters on Wednesday. The government will rework the sale but won’t sell a smaller stake, the official said.

The planned sale, which could have potentially been the country’s biggest privatization, had attracted interest from three suitors — the Vedanta group, Apollo Global Management Inc. and I Squared Capital Advisors. While Vedanta’s billionaire founder Anil Agarwal was willing to spend about $12 billion for acquiring BPCL, the others backed out amid oil price volatility and uncertainty over local fuel pricing.

Prime Minister Narendra Modi’s government had announced the sale in 2019 as it sought to raise record funds by offering majority stakes in state-owned companies to boost a slowing economy. India will not rush into selling BPCL if it ends up with a lone suitor, the nation’s top bureaucrat overseeing asset sales had said in February.

BPCL shares closed 3.1% lower in Mumbai. –Bloomberg.


Also read: Asian refiners to ramp up gasoline exports to US as sky-high prices beckon


 

Subscribe to our channels on YouTube & Telegram

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

Most Popular