ONGC in lead to acquire UK-based co

Oil and Natural Gas Corporation (ONGC), India`s largest crude oil producers is in a lead to buy Imperial Energy, a GBP 1.2 billion London-based oil exploration and production company, reports Economic Times.

ONGC Videsh, the international arm of the company got approval from the government to go ahead for the bid.

Deutsche Bank is representing ONGC and has approached Imperial`s top institutional investors to ask for an irrevocable commitment to their offer.

ONGC has offered GBP 12.90 a share for Imperial Energy, which has led to a global bidding war. Imperial Energy has assets in Russia and Kazakhstan.

The other companies in race for acquisition are China`s Sinopec and KNOC of Korea. The acquisition will generate nearly GBP 80 million for Imperial`s chairman Peter Levine, who started the company in 2004 and retains a 6% stake.

Shares of ONGC gained Rs 4.2, or 0.42%, to trade at Rs 1,013.1. The total volume of shares traded was 148,194 at the BSE (1.24 p.m., Friday).

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